Impact of Indian Economy on the Indian Stock Market

It is well debatable that stock market affects the working of an economy. But it is a sure act that the stock market is an indicator of the potential of the economy. Does really the economy affect's the stock market? And if than how and to what extent. The potential of the economy and the results in the new policies of the government and the economic changes affecting the trend of the stock market. The Indian stock market is the 5th largest in the world in terms of market capitalization and the Indian economy the 6th largest in the world. The Indian stock market which has doubled its investors by the sudden surge of the retail investors since the spread of covid-19. These investors are holding the market into a stable situation throughout the tough times like the rise in inflation, Russia-Ukraine war, China-US trade war, change in repo rates, currency fluctuation, rise in unemployment rates, the rising covid-19 cases in China and rise in the crude oil prices. And the different Indian economic factors affect the trend Indian stock market. Mainly the markets are affected by the inception of a government body in the India. Investors in India believes that a strong government body can bring potential progress, growth and international relations which are keys factors for a healthy growth of an economy and the stock market of that nation.