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Govt must focus on reforms soon; like autos: Ambit Cap

Saurabh Mukherjea, chief executive officer, Institutional Equities at Ambit Capital says the market will pick up pace only if reform momentum kicks off and adds that he isn’t too worried about global slowdown.

Investors are currently awaiting the Maharashtra and Haryana state election results on the assumption that once this event is out of the way, the Prime Minister will finally settle down and look at administration changes and reforms, says Saurabh Mukherjea, chief executive officer, Institutional Equities at Ambit Capital.

Speaking to CNBC-TV18’s Latha Venkatesh and Sonia Shenoy, Mukherjea says the economy continues to be soft and no infra project has taken off significantly.

“We need reforms to come in soon now. Also the next Budget will be very critical for the market as the July Budget was a damp squib. The government should be able to convey its focus on fiscal discipline come what may,” he says.

The areas, Mukherjea says, that need attention to are: labour reforms, land reforms and goods and services tax (GST).

On the market-front, Mukherjea says the market will pick up pace only if reform momentum kicks off and adds that he isn’t too worried about global slowdown. He has a year-end target of 30000 on the Sensex with a 10 percent downside risk if the policy reforms don’t come in.

On sectoral plays, Mukherjea like autos and auto ancillaries.

Transcript to follow soon. 

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