Sunder’s List: stock market ≠ economy

Roundup: S&P -0.38%, Dow -0.47%, Nasdaq -0.28%, Gold $1,324.40, London -0.68%, Germany +0.26%, France +0.60%. At pixel: Nikkei -0.38%, Hang Seng -0.01%

Gold jewellery sales are likely to decline by up to 60% this festive season due to stock crunch following restrictions on imports. (ET) [stockquote]GOLDBEES[/stockquote]

Mamata’s potato politics: Mamata Banerjee’s decision to stop movement of potatoes from the state has made the tuber go beyond the reach of common people in states of Odisha, Bihar, Jharkhand, Andhra Pradesh and the entire north-east. Prices have touched the roof in most of these states with people in Assam buying a kilo of potatoes at Rs 45. (ET, inflation)

Elder Pharmaceuticals has defaulted on interest payment of Rs 261.8 crore on its debentures. (ET) [stockquote]ELDERPHARM[/stockquote]

Will independent Civil Servants Boards fly? Will we finally allow our last remaining honest bureaucrats to remain honest? Hopefully, the Supreme Court’s judgement will actually get to see the light of the day. (LiveMint)

Stocks trade based on three things: sentiment, valuation and trend. Yes, economic data feeds into these things, but it is up to the trader or investor to determine their combined favorability, an economist does not do that sort of work. The reality is that there is no such positive correlation over various periods of time between economic data and stocks in any given country. (TRB)

Good luck, Happy Diwali and have a nice weekend!

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