25 Sep 2025 | 5 Mins Read
Stock market and economy connection weakens over time
Flipitmoney
The Indian stock market's disconnect from the real economy has increased over time. The market's performance was tied to interest rate changes between 2003-2008, but since 2009, it has been disconnected due to distortions caused by Western monetary policy, buy side actions, a narrow market index, and liquidity factors, resulting in valuations far exceeding earnings.