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    Rakesh Jhunjhunwala sees conditions for birth of a bull market; realty, pharma, infra, IT top bets

    Synopsis

    “The market is looking into the future,” Jhunjhunwala said about the recent rapid stride in the benchmark Sensex. “The drop in interest rates is also one of the reasons for the bullishness in stocks,” he said.

    ET Bureau
    The Big Bull also predicted an imminent revival in the realty sector, which has been down in the dumps ever since the Modi government announced demonetisation to cripple the cash economy.

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    NEW DELHI: Covid-19 disruption has not dented the confidence of the eternal India Bull, Rakesh Jhunjhunwala, any bit.

    The ace investor says India is on the doorsteps of a new bull market, thanks to a series of reforms like RERA, GST and IBC, whose benefits will start showing up in the economy now.

    “The typical conditions for the birth of a bull market are here: you have a changed country, you have a deep fall in growth and everybody is perplexed by the rise of stocks,” Jhunjhunwala, often referred to as India’s own Warren Buffett, told NDTV during an interaction.

    India’s benchmark equity indices have climbed more than 50 per cent from their lows hit in March 2020 despite high-frequency indicators showing a lot of pain in the broader economy. India’s June quarter GDP growth plunged to a multi-decade low at – 24 per cent.

    “The market is looking into the future,” Jhunjhunwala said about the recent rapid stride in the benchmark Sensex. “The drop in interest rates is also one of the reasons for the bullishness in stocks,” he said.

    The Big Bull also predicted an imminent revival in the realty sector, which has been down in the dumps ever since the Modi government announced demonetisation to cripple the cash economy.

    “The real estate sector has bottomed out and is showing early signs of picking up,” he said. The BSE Realty index has jumped 35 per cent in FY21 so far, with Sobha gaining the most at 74 per cent, followed by Godrej Properties (up 53 per cent), Indiabulls Real Estate (up 52 per cent) and Sunteck Realty (up 40 per cent). Other index components too are up in excess of 20 per cent.

    Jhunjhunwala said he is bullish on infrastructure, pharmaceutical, technology and IT in equity and on gold in commodities.

    “There is a digital revolution going on around the world and India is in better placed to tap the opportunity,” he said.

    Asked what are the next big reforms India should be looking at, Jhunjhunwala said there is a need to improve ease of doing business though land and labour reforms. He also advocated selling of public sector enterprises.

    The ace investor said India’s GST collections should grow at 2-3 per cent annually. “It will take some time. In other nations, it took six years for GST to stabilise,” he said.
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    14 Comments on this Story

    Krbaskaran34 days ago
    While the government is trying to stimulate the economy and help the people, speculator and foreign vulture with the USD created from thin air and pumped at near zero interest are pushing the stock market to new high,to suckout the National wealth.Government should tax the speculator heavily and impose wealth tax to mop up money and stabilize the stock market.RBI must ensure that the bank's do not lending more than the book value of the shares with adequate margin.
    Surya Kumar Rao Kumar37 days ago
    This obese bania thinks he is an authority in the market. He is just an illiterate gambler
    Khan38 days ago
    Paid news to keep honest investors putting in MONEY and these traders becoming sellers. So in true sense common people buys when stocks are at high and these markets bulls sells the stocks and fearing losses when market falls small investors sell and again such so called bulls buys andakes bumper profit. When there are no jobs, economy is crippled due to a vast difference between government agencies and common people people working in IT companies are soaked in debt traps where will the money come from. GDP is at 10 yr low and stock market is making new highs, companies are running at reduced capacity o4 under utlization of resources and stock prices are shooting new highs how can this be possible unless and until there is a sitting scam waiting to burst and retail, small and new investors will left to fend for themselves
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