Big bull Rakesh Jhunjhunwala has decoded why domestic stock markets stood firm when the grim second wave of coronavirus stunned the nation. The ace investor believes that the sentiment in the nation may possibly be adverse at this juncture but India’s reality is not adverse and therefore that has offered Dalal Street the nudge. “Sentiment is bad but the reality is not. In the third and fourth quarters, Indian companies have reported the biggest profit growth in the last five years,” Rakesh Jhunjhunwala told Hindi news channel Aaj Tak in an interview aired this week.
Corporate income soar
“In 2008, India’s corporate profits to GDP were 8%, and in 2019-20 the same was down at 2%. I believe this year we will have it at 6%,” Rakesh Jhunjhunwala mentioned when stressing the positive outlook for the Indian economy. He added that in his view, India is getting into a phase exactly where the nation will see double-digit development. He mentioned that India will witness 10% GDP development this year and will continue witnessing higher development for the next 20 years. Further, the billionaire investor gave a thumbs up to India’s financial management, adding that the government’s vision to provide tap water to every single household is one thing that will save lives going forward.
Covid-hit sectors to bounce back
Talking sector-precise, the massive bull mentioned that all sectors will emerge from the pandemic. “The sectors that are badly affected are restaurants, tourism, and aviation. They will come back with a bang,” he mentioned. Rakesh Jhunjhunwala added that in his view, by the finish of this year resorts in India will after once again see buyers coming back strongly. “… five years down the line I will tell people to sell and nobody would do so, but right now, nobody is ready to buy,” he mentioned.
Share marketplace investment mantra
Rakesh Jhunjhunwala also shared his mantra for investing in stock markets, which he says, has not changed so far and will not transform in the future as well. “I invest in markets seeing the same things now that I did back in 1985. Nothing has changed. Markets base final valuations on cash flow,” the massive bull mentioned when cautioning folks that markets move in excess in either path.
On the present wellness crisis, the ace investor mentioned that India could be hunting at going back to typical quickly. “This is a tragedy and there is no question it is a war and we have to fight it,” Rakesh Jhunjhunwala mentioned.