SENSEX NIFTY
Oct 08, 2012, 04.12 PM IST | Source: CNBC-TV18

See more reforms in next few weeks: Ambit Capital

After the recent rally, the Indian market has corrected sharply today. In an interview to CNBC-TV18, Saurabh Mukherjea, head of equities at Ambit Capital says he would not attribute this to national factor. He expects more reforms coming in the next few weeks.

After the recent rally, the Indian market has corrected sharply today. In an interview to CNBC-TV18, Saurabh Mukherjea, head of equities at Ambit Capital says he would not attribute this to national factor. "This is more of a global concern. I don’t think the government has anything done wrong in the couple of months to precipitate today’s correction," he adds.

He expects more reforms coming in the next few weeks. "There are multiple tranches of reform coming in the next few weeks. From that perspective, that driver of our economic growth story remains," he adds.

Also read: Aiming for fiscal deficit of 5.3% or lower, says Chidambaram

Below is the edited transcript of his interview on CNBC-TV18.

Q: As far as today’s action goes, how do you explain it? The government is making the right noises. But is it the global concerns that are returning once again? Is it that the post reform euphoria dying down?

A: I would not attribute this to national factor. This is more of a global concern. I don’t think the government has anything done wrong in the couple of months to precipitate today’s correction. I wouldn’t worry about it at the national level because this is more a global economic recovery concern than an India specific issue.

Q: Taking that into consideration, do you think 5,700 is sustainable for now?

A: There is more reforms coming in the next few weeks. There are multiple tranches of reform coming in the next few weeks. From that perspective, that driver of our economic growth story remains.

The ECB intervention will become more active in coming weeks. Whether it is for global cues perspective or domestic reform momentum both will continue. I don’t think that much bad news is coming-in in the results, if the market hasn’t factored in.

Q: The Bank Nifty has seen a pressure. What are your thoughts?

A: Most of the expected banks have rallied strongly over the last month or so. But this was expected.

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