The Sensex is often not in sync with the real economy. The movements in the benchmark index of the domestic capital markets have often been completely opposite to the happenings in the economy and those of the critical economic indicators.
History speaks for itself…
|
| 94-95 | 95-96 | 96-97 | 97-98 | 98-99 | 99-00 | 00-01 | 01-02 | 02-03 | 03-04 |
| Nominal GDP | 17.4% | 17.0% | 15.9% | 11.8% | 15.0% | 10.2% | 8.0% | 9.9% | 7.8% | 11.7% |
| Real GDP | 7.3% | 7.3% | 7.8% | 4.8% | 6.5% | 6.1% | 4.4% | 5.8% | 4.0% | 8.5% |
| BSE Sensex* | 13.7% | 3.3% | 0.2% | 15.8% | 3.9% | 33.7% | 27.9% | 3.7% | 12.1% | 83.4% |
| BSE-100 | 12.2% | 3.5% | 5.5% | 15.9% | 2.7% | 75.8% | 41.7% | 1.4% | 12.5% | 97.6% |
| BSE-200 | NA | 6.3% | 4.9% | 14.9% | 0.8% | 63.9% | 41.1% | 7.4% | 8.9% | 104.3% |
Why if sensex falls there is news in the markets Indian economy not performing well?
Sensex is not a relevant index it is a quite narrow index just 30 companies cannot rule our Indian economy.
