No follow-through by government on market optimism: Arvind Sanger, Geosphere Capital Management

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

ET Now: It has been a horrible earnings season. Earnings have pretty much nosedived but markets are still holding up. Are fundamentals justifying the market move?

Arvind Sanger: This market has been looking at FY16 as long term recovery. But to believe FY16 recovery story for the market run, we need to see some signs of a turn. What is disappointing to us as it is to many others is that it has been several quarters since this government came to power and we keep hearing of our people feeling optimistic and businesses feeling optimistic but we are not seeing any follow-through.

Typically when you have an improvement in confidence both by consumers and by businesses, you see reasonably short order a follow-through in the economy and this time, this does not seem to be.