Is Stock Market the Barometer of any Economy? Indian Case Since the Outbreak of the COVID-19 Crisis

There have been numerous research trying to relate the stock market indices and the GDP. The research have focused on investors trying to predict stock prices on one hand and governments, trying to make policies on the other. But will the indices actually reflect the economic growth or fall? This topic has been extensively researched and the findings have been very inconsistent both these variables are not directly interlinkable due to various elements involved , which include cross border transactions too (Boubakari & Jin, 2010). COVID-19 is one such crisis scenario where the markets fell for a very brief period and recovered a lot faster, whereas economic growth recovery is taking a longer. Current study focuses on studying the extent to which the statement “Stock market is the barometer of an Economy” with reference of the impact of COVID-19 crisis on the economy’s real GDP Growth and the BSE Sensex Index movements India, since the virus had its widespread effects on the Indian population