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Financial boom at a time of economic stagnation Updated: Updated: The paradox becomes clearer by recognising the circuit of financial flows beyond the real economy Share Article The paradox becomes clearer by recognising the circuit of financial flows beyond the real economy Divergences between the booming financial and the stagnant real sectors, which appear rather confounding as well as disconcerting, warrant an explanation. Enumerating the facts in India’s major secondary stock market, the Sensex (the benchmark index of the BSE Limited, or formerly the Bombay Stock Exchange Ltd.) has been found tracking an upward path, from 40,817 on January 8, 2020 to 48,569 a year later, on January 8, 2021. In between, the temporary downward slides were responses to the pandemic-related lockdowns during early 2020. Jubilant upward strides in the stock market continued, along with speculatory financial transactions in real estate, gold and even commodities. However, we notice that fin

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