Market waiting for government to take tough decisions: Arvind Sanger

In a chat with ET Now, Arvind Sanger, Managing Partner of Geosphere Capital Management, shares his views on FDI. Excerpts:

ET Now: Closer to the election verdict, we got a blast of flows into India and while FDI flows are still looking up as indicated by the DIPP data, somehow the fund flows into India have softened a bit in the last three or four weeks.

Arvind Sanger: There has been a certain amount of risk off on a global basis and India's story has gotten a little bit stale. It is all this hope trade and the hope trade is based on the fact that India is one of the places where you can see visible gradual recovery in growth and therefore in earnings but the stocks are up a lot and so they need some new fuel to the fire. Therefore, there has been a little bit of a pause between some global factors and local lack of new exciting news.

Again, I do not think this is anything more than a healthy pause and therefore I think a lot of what happens in India is going to be driven to some extent by global factors and the market is looking for this government to make some tough decisions.

I think what is frankly somewhat disappointing is that the government has made really no tough decisions. So the markets have adopted a wait and watch policy but global funds is not going to be one directional all the time.