Noted investor Rakesh Jhunjhunwala said he remains the eternal bull on Indian markets, saying stocks could embark on a long-term bull market following the correction induced by the COVID-19 crisis.
“I am very bullish on the market and remain fully invested,” Jhunjhunwala told CNBC-TV18, even as he peppered his comments with a sense of cautiousness. “From being a “sure bull”, I have become a hopeful bull,” he said.
The investor added that he is “frustrated” with the slow progress on land and labour reforms. “India must urgently focus on ease of doing business. Only this will allow us to achieve our full potential,” he said.
Mumbai-based Jhunjhunwala who started in the stock market with Rs 5,000 and went on to become a billionaire, is a self-professed long-term India bull, building a fortune investing in stocks that have benefited from the country’s consumption boom.
His views have always been predicated on not only on hope of government reforms but also that India as a country will eventually find its way to doing the right thing. He has also often praised the Centre’s pro-business policies though his comments today suggest he believes more needs to be done.
He maintained that the world was witnessing an unprecedented liquidity surge, which will invariably find its way towards India. “If we do the right thing, we will grow at 8-10-12 percent. Even if we don’t, earnings will grow at 5-6 percent, which would be enough to create a bull market,” he said. “Still, I am hopeful that we are at the start of a long-term bull market.”
Indian shares have fallen about 20 percent from record highs this year amid a pandemic-induced lockdown that has ravaged the economy.
Jhunjhunwala, however, said that he feels that the COVID-19 crisis has been “blown out of proportion”, dubbing it a flu that Indians will manage to live with.
He added that as an investor, he wasn’t much concerned about the lockdown’s impact on corporate earnings. “This year, I am only concerned about which companies will survive. As long as they survive, I have no problem with them.”