CV cycle may not kick start any time soon: Hemindra Hazari

In a chat with ET Now, Hemindra Hazari, Market Analyst, shares his views on revival o economy.

ET Now: Almost everybody has a consensus view is the CV cycle turnaround companies have said that, suppliers have said that, markets analyst have said that are you sceptical on that as well?

Hemindra Hazari: Yes, because the CV cycle would be definitely linked either to mining industry or capital goods industry so that would mean that you are expecting a general revival in the investment capital expenditure. As of this moment it appears remote because globally we have not seen that, in India also with the absence of government increasing expenditure it is highly unlikely that the private sector will invest in capacity additions.

So what you are seeing is may be some pockets of revival taking place and people are trying to generalise from there but we do not see how a investment cycle can revive in India without government increasing expenditure.

Private sector will not be stepping in in such an environment to take these types of risks because globally, even with very low interest rates companies have not ventured because there is a slowdown in demand the collapse in commodity prices also are indicating that. So to me in such an environment even the Indian corporate sector would be sceptic about investing in capex at this time.