India's stock market rally raising risks for economy: Bloomberg

Bloomberg economists opine that India’s record-breaking stock rally may be enriching investors, but it is posing risks for the nation’s economy. According to them, the sharp run-up in gains in the country’s stock market has increased the economy’s vulnerability to a market setback. Ankur Shukla, an economist with Bloomberg Economics, stated that a retreat for the Nifty 50 Index would reduce GDP by 1.4 per cent in the same quarter of the shock and by 3.8 per cent over the following year. At present, Nifty 50 Index is trading at about 35 per cent above its historical trend level.