Not worried about fiscal deficit on high GDP growth: Ambit
Published on Tue, Feb 09, 2010 at 11:05 | Source : CNBC-TV18
Updated at Tue, Feb 09, 2010 at 13:18
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Not worried about fiscal deficit on high GDP growth: Ambit
Andrew Holland, Chief Executive Officer of Institutional Equities and Equity Proprietary Trading, Ambit Capital Pvt Ltd is not worried about fiscal deficit on high GDP growth.
Andrew Holland, Chief Executive Officer of Institutional Equities and Equity Proprietary Trading, Ambit Capital Pvt Ltd believes Budget over the years have had few surprises here and there - but everyone's focus now will be towards fiscal deficit. "I am little bit less concerned about that given that the GDP growth in India should continue to rise and if the government can do the right things then hopefully they can start to get real foreign direct investment into large expansion plans that they have and therefore the deficit to my mind is less of a concern."
He says, "I don't think it's ahead of the Budget. It's more to do with that coming into the year everyone was just too optimistic, likely to expecting the global stimulus to continue, no tightening. People have just been shocked into that there are risks and that is really what's been happening. But valuations were not supportive - the backend of the earnings seasons was not very supportive either.
On earnings upgrades, Holland feels, "If one is expecting any kind of analyst upgrades for this year and that was spilling over in FY11 it didn't really happen. Therefore you are really kind of looking around to see how you could support valuations at the 17,000 levels and no one could. So you have the double whammy of markets turning negative globally and plus no real support in terms of leaders, in terms of the Sensex or the Nifty.
