New Delhi, Sept. 29 -- Do the economy and markets go hand in hand? Mostly yes, but not always. There are times when the two can diverge, with the stock market moving in a direction that appears disconnected from the underlying economic fundamentals.

To understand it better, look at the Indian economy and its stock market. India's GDP grew by of 7.8% in the first quarter of FY27, exceeding expectations, the International Monetary Fund (IMF) said.

The country's factory output, measured by the Index of Industrial Production (IIP), rose to 8% in August, higher than the revised 7.4% expansion in July, and the 4.7% growth recorded a year earlier.

Now, look at the Nifty 50. The benchmark index is down 13% year-to-date (YTD). The market is cle...