Former SEBI chief M. Damodaran spoke to Arti Sharma about the new government's priorities and the stockmarket's relevance. Excerpts:
Will this new government be able to deliver on reforms?
The present arithmetic of the Lok Sabha seems to indicate there is no ideological obstruction to what is perceived to be the reform process. So, at least some of what is considered to be reform will go through. Also, having lost out a few years when reforms did not take place, there is a sense of urgency. But there are challenges. Raising the resources for this in a manner that does not stretch the fiscal deficit is critical. Clearly, the market doesn't think all this is going to happen tomorrow morning.
Is the market then expecting too much?
Well, look at the (election) results we've got. I don't think the excitement in the market is unwarranted. But it's important to remember what happens in the market is less relevant than what people give it credit for. As we all know, fundamentally not much has changed; we still have issues—the...