Investors will look at growth, reforms after post-poll euphoria: NSE chief
NSE chief's comments on numbers come amid expectations of economic growth slipping to around 6 percent in the last quarter of FY19, which is much below the aspirational 9-10 percent level.Press Trust of India
Investors are pinning hope on reforms and GDP expansion from the new government and would look to growth numbers once the post-election euphoria dies down, National Stock Exchange's head Vikram Limaye said on Tuesday.
The comments come amid expectations of economic growth slipping to around 6 percent in the last quarter of FY19, which is much below the aspirational 9-10 percent level.
"Growth has to pick up once the euphoria (after election) dies down. People will be focused on fundamentals ... and I think there is some catching up to do in terms of economic growth," said Limaye, the Managing Director and Chief Executive of NSE.
He said, for now, the markets were very positive on the election outcome as investors feel continuity be a positive. Limaye added that everybody was hopeful for growth and reforms from the new government.
In a report on Monday, economists at the country's largest lender, SBI, said the GDP growth would slip to 6.1 percent for the January-March period, which would drag down the full fiscal's GDP expansion to under 7 percent.
Official data on GDP growth will be released on May 30.
A slew of other analysts have also flagged growth as the prime short-term concern which Prime Minister-elect Narendra Modi will have to grapple with. In the past, critics have hit out against revisions in computation methodologies.
Equity benchmark indices Sensex and Nifty Tuesday scaled new closing peaks for a third day in a row, riding on optimism that the re-election of the BJP-led NDA would push reforms, even as high volatilty during the session reflected cautious investor outlook in view of tepid global cues.
The BSE Sensex closed 66.44 points, or 0.17 percent, higher at 39,749.73 -- its all-time closing high; while the NSE benchmark Nifty logged a marginal rise of 4 points or 0.03 percent to settle at 11,928.75 -- a new closing peak for the index.
Limaye was speaking during the launch event of a new logo for the stock bourse's 50-share benchmark Nifty. He also said that a newly revamped website was being tested internally and would be launched soon for the outside world.