Former Chief Economic Adviser Arvind Subramanian said on Thursday that it was “puzzle” for him that stock markets are touching new highs while the country’s economy is sinking.
“I hope that the first behavioural economics project of this Centre would be to explain to me why as the economy is going down and down and down, the stock market is going up, up and up”, said Subramanian, at the Indian Institute of Management Ahmedabad (IIMA). He was attending the inauguration of ‘NSE Centre for Behavioral Science in Finance, Economics and Marketing’.
Subramanian further added, “If you can crack this puzzle for me, I would fly down here all the way from the US to understand it…There are lots of other things I do not understand, (such as) financial markets in India.”
It is not the first time when the alumnus of IIMA made a statement on the country’s economy, earlier he said that India was facing a “great slowdown”.
On Thursday, after rallying to its lifetime intra-day high of 41,719.29, BSE Sensex closed at 115.35 points up at its fresh closing record of 41,673.92. The NSE Nifty rose 38.05 points, or 0.31 per cent, to its new peak of 12,259.70.
(With input from agencies)