Rare Enterprises is bullish on banks, the so-called inefficient ones as well, Rakesh Jhunjhunwala, ace investor and a partner at the firm, told CNBC-TV18.
“I am extremely bullish on the banks and I am extremely bullish on the so-called inefficient banks because I think the non-performing asset (NPA) cycle has turned. The inefficient banks have got very high-cost income ratios, the cost-income ratios are going to come down dramatically," Jhunjhunwala said.
“Therefore, I am very bullish on the banking sector as a whole and especially on the old inefficient banks whether in the public sector or otherwise because they have the cheapest valuations and they are going to see the cheapest upside in earnings,” he said.
Year to date, the Nifty Bank index is 11 percent in the green and in the last six months has risen 18 percent.
The market veteran believes that India will become one of the pharm centres of the world as the Indian pharma industry is in a secular bull run.
“India makes 40-45 percent of medicines consumed in America. We have a large home market. Our healthcare consumption is going through the roof because our gross domestic product (GDP) is reaching that level where discretionary expenditure on health will increase dramatically aided by the experience we have gone through COVID," Jhunjhunwala reasoned.
In the last six months, the Nifty Pharma has beaten the benchmarks rising almost 15 percent. However, in the past month, it has traded flat.
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