Stormy rally in stock market but negative factors of economic growth
AHMEDABAD: The Sensex surged to 30,000 at the start of trading today on support from local factors as well as favorable signals from the Federal Open Market Committee meeting and fears that Chinese real estate company Evergrande could default on debt. Investors, meanwhile, are a little apprehensive as the stock market has seen an incredible rally. When this boom bubble bursts, it will bring a huge wave of decline and everything will sink. The rise in the stock market is being seen by some as a sign of a sharp recovery in the economy. But is it really reasonable to look at the stock market as an indicator of economic growth? This is because even though the stock market is soaring, figures from other economic indicators such as unemployment and manufacturing in the country are giving a slightly different signal while manufacturing activity has not picked up. The manufacturing sector plays a major role in the economic development of the country but activities in the region do not seem...