Globally, consumer confidence is resurgent and the infectious optimism that the worst is over has catapulted stock markets to new heights. India has been among the best performing markets in the world since early May. Confidence and stock market gains have had a happy relationship over the years. But the nature of the relationship between a revival in confidence and rising stock markets is somewhat fuzzier. Is it possible that markets tend to influence perceptions of reality which, in turn, are a vital feedback loop for the markets?
(This story appears in the 03 July, 2009 issue of Forbes India. To visit our Archives, click here.)