There are still a lot of expectations engendered on more reforms: Ajay Bagga

In a chat with ET Now, market expert Ajay Bagga shares his thoughts on the market. Excerpts:

ET Now: They were waiting for reforms and got two big ones in a single day. From the market perspective at large, does this reverse the FII mood?

Ajay Bagga: It is being taken very positively. If you read the international press, it has all got front page coverage - be it FT or Wall Street. It has also got extensive reporting as well. You can link that with the regional elections, which are out of the way, and the government's reform agenda, which is back on the front burner. Clearly then, it has been taken very positively and there is a lot of expectation engendered on more reforms.

ET Now: Is it suffice to say that despite all that we have lost in the last couple of days thanks to global volatility, we do have a chance to regain that considering the news flow is backing us now?

Ajay Bagga: Yes, when it comes to news flow, both domestic and international have been good. Hence, we are expecting a gap up opening today. The international trends are very good. The Nikkei today opened at nearly 3% up. Australia started up very well with nearly 1% up. There is a bounce back in global markets and now what analysis is coming out with is that equity markets has got hit more by the inflation expectation or rather the deflation expectation and the ECB board member saying that they are coming with a QE in the next few days. It has given the markets a strong bottom and from here, we are seeing a little upside to the international markets, to which India is a beneficiary.