It is very-very simplistic of the market to believe that the government can do something which will change things around, said Udayan Mukherjee in an interview to CNBC-TV18.
"It is very-very simplistic of the market to believe that the government can do something which will change things around. It can change sentiment for the stock market for a day or two but economists will tell you that it is not so easy to do something worth USD 6-7 billion or USD 7-8 billion and suddenly an economy which is sagging because of very different reasons will start to gallop once again. It is very-very unlikely that that will happen," Udayan Mukherjee, Consulting Editor of CNBC-TV18 said in an interview to CNBC-TV18.
Talking about fiscal deficit, he said the government already knows that it is not going to able to hold the fiscal deficit to 3.2 percent this year.
He further said the stock market wants all kinds of things; 100 bps cut in the interest rate regardless of whether it is justified or not, great stimulus because stock market wants a rally. It has no interest in what happens to India in the long-term, he added.