The Hindu Business Line : Stock indicators

This has reference to the article "Stock Market - Barometer of Economy?" (Business Line, March 24). The story rightly pointed out that the stock market does not represent the state of the economy.

This is more evident from the fact that the Sensex, which was around 3,500 a few months back touched almost 7,000 in March, 2005, although the performance of the economy has not shown any such dramatic growth.

Movements in the stock market only indicate expectations of a small segment of population.

The reality is that 90-95 per cent of the population may not even be aware of the existence of stock market.

It is high time authorities and market operators realise that investments in the stock market do not reflect performance of the economy.

T.V. Gopalakrishnan

e-mail

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
India in an emerging world order

Patent battle won

When Ms Rice and Mr Wheat came calling

Common rail injection systems — Advanced technology for diesel vehicles

Equitable settlement means each party gets 50 per cent of publicity

GATS: Thirsty corporations eye the global water market

Problem employer

Honest development

Stock indicators