Mkt lacks depth; need clean-up of UPA's reforms: HCC

Below is the transcript of Ajit Gulabchand’s interview with Nayantara Rai on CNBC-TV18.

Q: What is your view on the market currently?

A: I think that the market while it is growing, it lacks the depth that it should have. We need a whole range of players right from your day traders to some long-term investors.

Today’s growth, today’s investments are not about long-term and therefore while we are showing there is a slight mismatch between the market what it is displaying in its side and on the other side is the reality of some of the issues that are still to be resolved. I am not talking of reforms, I am talking of hygiene issues where a lot of things that of the economic policies of the last government that have come crashing down on the country, those need to be cleaned up. Those are still not happening.

So, this wonderful feeling of the Sensex is not felt throughout the industry. So, while this is very welcome and extremely good news it still falls short of being a news that would say how long-term money is coming to India. There is no new investment.

Q: That is exactly I wanted to ask you about because this has also come in at a time when India’s factories are still crawling, we have had disappointing IIP data.

A: There is no new investment happening as yet. So, once they tackle the issues of hygiene before they come to reform I think we would see another quality of investment coming in where the rally will be not just the Sensex but all-round.