Cabinet formation and then the budget crucial for business confidence: UR Bhat

In a chat with ET Now, UR Bhat, MD, Dalton Capital Advisors, shares his views on market outlook.

ET Now: Enough and more has been deliberated on what the NDA regime could do but it is often said on Wall Street or on Dalal Street that good news and good prices they really come together, news is super and fantastic but are prices also good?

UR Bhat: Prices have been good last Friday.

ET Now: Are they still good?

UR Bhat: The economic fundamentals do not change, the corporate earnings growth numbers do not change dramatically just because of the political change in centre. Business confidence changes dramatically and that is what we saw on Friday. As long as the business confidence continues to be quite high, this run may be sustained but the next sort of data point for us is the cabinet formation and then the budget. Therefore this is the two new sort of data points that people and markets are expecting.