Sensex has more than doubled in 2 years from 9K to 19K.
Now we have to ask does the SENSEX index can be hold as a parameter to judge Indian economy?
Ideally the Market indexes should reflect the underlying economy. But then we all know the Indian economy has not DOUBLED in 2 years, even with 10% annual growth it can be assumed it only grew by 25% in 2 last years.
So either the SENSEX was grossly under-estimated prior or now it is discounting for coming years of 10% growth.
