The market touching new highs is more of an optical illusion
The big question every market observer is asking today: why are the markets touching new highs when the economy is in such dire straits? Of course, this rally is not supported by fundamentals and driven mostly by liquidity. A second point to consider is that only a few stocks are driving this rally. Thus, the market touching new highs is more of an optical illusion. The chart says it all. In the last two years, while the Sensex has been climbing, the total market capitalisation of all the stocks listed in BSE has remained the same.