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economy | IST

Exclusive: Rakesh Jhunjhunwala on Budget 2021, GameStop mania and why crypto is a myth

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Budget is conveying much more than what we are understanding, said billionaire investor Rakesh Jhunjhunwala in an exclusive interaction with CNBC-TV18.

Budget is conveying much more than what we are understanding, said billionaire investor Rakesh Jhunjhunwala in an exclusive interaction with CNBC-TV18.
"Budget is giving the signal that govt will do what it takes to get growth back. It has also conveyed a political message and indicates that the Indian government will be bold," he said.
For the first time, he further said, govt has called out rating agencies for the way they view India.
"I think PM has decided he will take decisions required to fire up India's growth and deliver social justice," Jhunjhunwala added.
"We have a resurgent, bold India on course for double-digit growth. India will not be able to absorb all the cap expected to come into the country. FY22 fiscal deficit will be between 6-6.5 percent and tax collections will be much better," he said.
On the corrections in stock markets, he said that it was swift and typical of one in a bull market.
"Biggest money will come from sovereign and pension funds in infra. There is one way for the market to go and that is up. Markets are giving a big chance and one should grab it," he opined.
All rallies are liquidity led, according to him, because demand is greater than supply.
"Global liquidity is not the only factor behind the market rally," he added.
Jhunjhunwala expects to see 1 percent growth in this quarter.
"Next year will be sharply higher. The capital expansion cycle has just started. The corporate sector has very low leverage today," he said.
Further, calling cryptocurrencies a 'myth', he said that they are not real currencies.
On Gamestop mania, he said, "How did US regulator allow traders to short more than the float?"