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 Tuesday.
The comments come amid expectations of economic growth slipping to around 6 per cent in the last quarter of FY2018-19, which is much below the aspirational 9-10 per cent 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," Limaye, the Managing Director and Chief Executive of NSE said.
He said for now, the markets are very positive of the election outcome as investors feel continuity to be a positive.
Limaye added that now, everybody is hopeful for growth and reforms from the new government.
In a report Monday, economists at the country's largest lender SBI said the GDP growth will slip to 6.1 per cent for the January-March period, which will drag down full fiscal's GDP expansion to under 7 per cent.
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 will push reforms, even as a high volatilty during the session reflected a cautious investor outlook in view of tepid global cues.
The BSE Sensex closed 66.44 points, or 0.17 per cent, 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 per cent 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.
Limaye also said that a newly revamped website is being tested internally and will be launched soon for the outside world.
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