Sensex weak, Nifty struggles at 7900; BHEL, Bajaj Auto up

Investors are currently awaiting the Maharashtra and Haryana states elections 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, 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.