May 16, 2014, 07.56 AM | Source: CNBC-TV18
Sharma is not too confident of exit polls, which he says, have traditionally always favoured the BJP.
Shankar Sharma (more)
Director & Chief Trading Strategist, First Global | Capital Expertise: Equity - Fundamental
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“Our fundamentals are the best among any major economies of the world. So, unless there is a major screw up by whichever party that comes to power, I think we will be just fine,” he told CNBC-TV18 in an interview to CNBC-TV18’s Latha Venkatesh and Anuj Singhal.
One of the main criticisms of the UPA II government was policy paralysis. However, Sharma believes the investment logjam was primarily due to unviability of projects. He says these roadblocks cannot be eradicated unless there is a complete change in the bidding process.
“From 2004 till 2009, we never heard of this policy paralysis or we never heard of bottlenecks of clearances or anything of that sort. It is only when the economy growth started to dip from 2010-11 onwards, because till 2010-11 we were still growth 8.5 percent despite the crisis, that companies started to complain about logjams and delay in clearances. Why did that happen? Is that a coincidence? The answer is: No,” he said.
Sharma thinks the market is expecting miracles from Narendra Modi, which is unlikely, especially since “precious little is known about BJP’s vision on the economy”.
But Sharma believes the market is likely to give Modi a longer rope compared to any other PMs. All said and done, he feels the market will trend higher in six-months if the exit polls turn accurate, with a very limited downside. “I do not expect to see 18,000 on the Sensex anytime soon,” he said.
In terms of stocks, he feels only Reliance Industries is worth playing in the oil and gas space.
Next page: Full interview transcript
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