‘V’ ON MARKETS COULD BE A 'U' OR 'L' IN REALITY: Indian economy is on a path of a V-shaped recovery, claims India’s finance ministry in its August outlook citing indicators such as manufacturing, e-way bills, kharif sowing, power consumption, cargo traffic and vehicle sales. A few days ago data showed a different picture that the economy contracted by a record 23.9 per cent in the April-June quarter. While the ‘V’ in real economy is yet to materialize, stock markets indeed have been on a V-trajectory. The market’s disconnect with reality comes with the risk of corrections, capital flight, currency volatility and impairments on corporate balance sheets that could delay the recovery. [COMMENT BY: Babu Das Augustine, Business Editor]
PTI/Gulf News Archives