Stock markets in relation to macro economy

The capital market is always considered as some thing very risky and fortunate .The recent market crash across every major economies is considered as related phenomenon beyond experts opinion . You can justify a lot with the so called fundamental VS technical analysis but the erosion of market and particularly when value stocks taken substantial erosion created a very panic situation across the investors. The bitter experience made every investor reluctant to step in to the market again or either many of them really short of funds to utilize the present opportunity. How many of us really think whether the stock market or capital market really reflects the strength of the economy when experts and economists speaks about a growth rate of 8-9% GDP and how the common man really benefits from the lower spectrum of the cycle. The markets every where is controlled by FIIS who really rules s the roast and those middle class people who exposed their money in the market really had felt the heat. When experts across the sectors speaks about the fundamentals and they says its very strong and market are again going to recoup to the old situation but how far the market makes a real difference to needy and poorer sections. The simple thump rule is that those who have money can make money other are always just a mere spectator around the ring. The time has arrived where the coupling and decoupling theory needs more focus and attention. the intervention of regulators arm in this scenario is very important and how they proceed with apt steps to tackle such tricky situations. I am of very strong opinion that movements in the stock market doesn’t really applies much significance to the concerns of the poor and needy but such developments are only going to make differences to those who have money to gamble or those who makes right investment decisions. The scenario is very important and in the larger context such developments are only benefiting the creamy layer of the society .The reality with wider disparities between rich and poor still remains sacrosanct and intact. Do capital markets really helps or create wider ramifications in the macro economic scenario for a economy like India with larger population still depends on agriculture, even though our commodity markets not doing any thing substantial to help the down trodden farmers and crippling agriculture sector. The captilism and market oriented growth are not going to benefit to the class of people who really needs improvement.,


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