Why high economic growth rate doesn’t translate into high stock returns
- Pravin Palande
- ET Prime Jan 09, 2026, 13:41 IST IST
Is the stock market a barometer of an economy as many believes it to be? In a world full of rational investors, the question is, if the economy is humming, why it is not reflecting in the returns from investments, at least the equities that is supposed to reflect the economic activity.
On Thursday, the Nifty 50 slipped 1%, dragged down by geopolitical tensions, falling commodity prices, FII selling, and the NSO’s projection of 7.4% GDP growth for FY2026. Hindalco, ONGC, Wipro, and TCS fell around 3% each. Despite the sharp GDP upgrade from 6.5% in FY25, the markets failed to rally.
On Thursday, the Nifty 50 slipped 1%, dragged down by geopolitical tensions, falling commodity prices, FII selling, and the NSO’s projection of 7.4% GDP growth for FY2026. Hindalco, ONGC, Wipro, and TCS fell around 3% each. Despite the sharp GDP upgrade from 6.5% in FY25, the markets failed to rally.
