What is Behind Equities' Gravity Defying Rally?

This Article was originally published in The Global Analyst “While markets and fundamentals seldom do a tango, a disconnect between the two carry the risks of disruptive market corrections.” RBI Covid-19 is now being talked about in relation to WWII type of an impact. It has destroyed economies, disrupted supply chains, and resulted in huge job losses with no vicinity of a solution. Yet, the stock market has impressively bounced back from its March lows and is heading higher by the day, both globally and in India. Are we missing something here? While stock market and broader economy do not enjoy a 100% correlation, they do rhyme as we can see from the graph. The connect is very clear and pal

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