Mkts backed by real fundamental growth: Norwest Venture

Promod Haque, Managing Partner, Norwest Venture Partners agrees that there are some apprehensions about the stock markets, but he thinks they (stock markets) are backed by some real fundamental growth.

According to him, technology has been a growth story and companies will need to invest in technology to beat wage hikes.

He bets on cloud computing and is particularly bullish on mobile applications and gaming companies.

Here is a verbatim transcript of the exclusive interview with Promod Haque on CNBC-TV18. Also watch the accompanying video.

Q: How are you feeling about markets? Are you apprehensive about where valuations have reached or confident about growth?

A: There are some apprehensions obviously about the stock markets, but I think they are backed by some real fundamental growth. So as you compare that with the growth that's happening then that becomes a bit more reassuring.

Q: In our interactions with lot of foreign investors this frequently seems to be the problem with the Indian market, at least the secondary market that valuations are making them uncomfortable. Compare to what you see across the rest of the world or emerging markets, would you concur?

A: Valuations are somewhat different in each country. We do investments in early stage companies and in growth stage companies in the US, in Israel, in India and in China and it's fair to say that each country has its own set of issues and therefore valuations in each country are somewhat different.

It's fair to say that in certain places like Israel and in US right now valuations are still attractive. But with a recent surge in the market even there the valuations of mid stage or private companies are starting to get up to a point where it's difficult or it's more difficult for us to structure deals and to some extent that's true of the public markets as well. Valuations are little higher, I would suggest in all the various sectors that at least we work in.