ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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apart, the economic prospect has been rendered obscure by the severe drought. Economic pundits are divided on the assessment of the possible impact of the drought on the governments resources position, agricultural production and rural incomes with inevitable repercussions on industrial production and the overall economic tempo. Sustained institutional support prompted in no small measure by the governments concern about the health of the secondary and primary markets to enable raising of massive resources for the corporate sector is the major bull factor from the viewpoint of the outlook for equities. Unquestionably institutional buying can make a profound impact on the market, outmanoeuvring even the most skilful operations by speculators with huge resources at their command. The link between the state of the stock market and the state of the economy is not all that strong as is often made out.

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