Slowdown across sectors

The macroeconomy is in trouble, GDP numbers are miserable and note ban has yielded poor results

The stock market continues to ignore signs that India Inc and the macroeconomy are in trouble. Gross domestic product (GDP) estimates for Q1, 2017-18, are miserable. The Reserve Bank of India annual report confirms, if any confirmation was required, that demonetisation had poor outcomes. The Q1 corporate results are also poor. There are far more downgrades than upgrades and there isn’t a single sector growing at a pace that justifies respective valuations.

Despite all that, money continues to flow into stocks. While domestic institutions bought over Rs 16,000 crore in August that was almost balanced by the Rs 14,000 crore