See FY10 divestment target at USD 4-5 bn: Morgan Stanley

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other FIIs are saying about the markets See what other experts are saying about markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 31/05/12 Are Mutual Funds betting on Nifty?

Q: You spoke about the GST in April 2010 but there has been some rumbling that maybe it will be difficult to implement by then, the states are not quite happy with the roadmap of regulation, preparatory regulation for GST implementation; do you think there could be delays there?
A: Yes, there are always risks but I guess the key thing is for them to get the draft out, we haven't heard that draft is completely out and once it is out there will be an opportunity for the states to response and then you can work back to resolve their issues. So there is a risk but I think that is probably a minimum we would expect from them to deliver on reforms because infrastructure spending will be less related to reforms, it will be more the execution and ensuring that things are done on the laws which are already there in terms of the law change that we would expect this is the one and I hope that they get that one going.
Q: Give us a word on where you yourself see the currency headed because that has been quite volatile over the past couple of weeks, any year end target you are working with, any risk of downgrade you are seeing over there?
A: Our currency team is looking for 45 to a dollar but I think that is on the premise that they are looking for a weak dollar. My view is that if you look for rupee on its own, it is probably going to stay stable i.e. it is not going to be an outperformer as a currency but if the dollar is going to go down across the board which is what our global team is expecting then you will see the rupee appreciation. I think the Reserve Bank of India's (RBI) bias is to keep it stable, the exports are pretty weak, capacity utilization is very low, it does not make any sense to see an out of line appreciation of the rupee versus other currencies.