Markets at a high, economy at a low

The markets are clear 5 per cent growth is not the new normal

Whenever I meet people involved with the real economy, they simply cannot understand how markets can be hitting new highs, when the economy is in trouble. It only reinforces the perception that the markets are a casino with no logic. How can you reconcile a new high in the Nifty with the economy growing at only 4.5 per cent? 

Even this 4.5 per cent number (a 26-quarter low) hides how bad it really is as government spending accounts for 1.9 per cent of this 4.5 per cent print. On a seasonally adjusted annualised rate basis, GDP only grew at 3.6