New Delhi, Sept. 21 -- A recent research report from a prominent Mumbai brokerage house has shocked Indian capital markets by lifting the veil over the Indian stock market's non-performance. But in doing so, the report also inadvertently focuses the arc-lights on two other consequential issues: the crisis in India's savings economy and a need to understand the government's pressing need to perpetuate the myth of a buoyant stock market.

This controversial note-titled 1-year, $90 bn and 0% Return Later from Kotak Securities-deflates much of the recent hype over stock market buoyancy by pointing to low corporate earnings growth and near-zero investment returns over the past 12 months.

The report points out that assertions about the stock m...