The next wave of economic reforms will help accelerate the economy and boost market sentiments, Raamdeo Agrawal, Joint Managing Director of Motilal Oswal Financial Services Ltd, said.
The Government has no choice but to take some quick decisions on addressing concerns of rupee volatility, liquidity for India Inc and fiscal deficit. It got away by doing nothing when the economy was growing at 8-9 per cent per annum, Agrawal told Business Line.
“The rupee volatility continues to be a matter of concern. The Government is slow to react. The economy and everyone in the system have been impacted. As the Reserve Bank of India is addressing some of these concerns, the situation will get better soon,” he said.
Asked about liquidity concerns, he said, “The Government must do more than what the market actually wants and that too, proactively. ”
Expressing optimism about the country’s growth prospects, he said several blue-chip stocks are quoting lower now when the index is at 20,000 levels, compared with the previous time when the index was at this level. An upward trend is on the cards. Global investors are keenly watching developments and will get back once sentiments improve.
“It is extremely surprising to see the Government failing to act on issues relating to large investments, such as the Posco project. Failure to address their concerns has cost us dearly. Investments of Rs 30,000 crore to Rs 40,000 crore are too big to be given such a treatment,” he said. Once such projects go away, they send wrong signals to the global investor community. Similar confusion prevailed in the Vodafone tax issue too, he pointed out.