‘It’ll be Big­gest Bull Mar­ket In My Life­time’

The Economic Times - - Markets -

Rakesh Jhun­jhun­wala spoke to Nikunj Dalmia and Aye­sha Faridi. Edited ex­cerpts: ND: What’s your first re­ac­tion to to­day’s (Fri­day’s) man­date? Do you think a new bull mar­ket or a Modi bull mar­ket has started now? Let us ex­am­ine the mar­ket later, let’s ex­am­ine what it means for In­dia first. It is the first time in the his­tory of in­de­pen­dent In­dia that a non-Congress party has got a ma­jor­ity in the Lok Sabha. This by it­self is a his­tor­i­cal event for In­dia. Sec­ond, it is an in­di­ca­tion of the ma­tu­rity of In­dian democ­racy. The BJP has per­formed well in seats in which Mus­lims have got very large voting in Ut­tar Pradesh. This in­di­cates people are not voting on caste and re­li­gion, people are voting for their as­pi­ra­tion, for de­vel­op­ment, for good in­fra­struc­ture. These two things are a very big mile­stone in the eco­nomic de­vel­op­ment of In­dia. ND: Modi is the new CEO on the sad­dle. Do you think he will be able to deliver be­cause the prob­lems for In­dia are rather deep-rooted? First of all, there has been a man­age­ment change in In­dia and I have full con­fi­dence in the new man­age­ment. I had full con­fi­dence in the man­age­ment of Ti­tan when no­body knew them and by god’s grace, I was proved right... His­tory has shown us time and again there are people who can han­dle dif­fer­ent sit­u­a­tions, near-im­pos­si­ble sit­u­a­tions, and change things around, and with In­dian po­ten­tial­ity and with Modi’s tac­ti­cal think­ing and his abil­ity to carry people with him, this is some­thing which we In­di­ans will not re­alise what has hap­pened. We will re­alise five years later. ND: Has a new bull mar­ket started? Well, you have any doubts? ND: I am ask­ing you... Well the Nifty is 1000 points higher from its pre­vi­ous highs, a high it held for five years. I don’t know why people should doubt it. Qual­ity stocks are gain­ing, the num­ber of new highs against num­ber of new lows is some 50 to one, good qual­ity stocks are go­ing to new highs. Mar­kets are go­ing up. Do not for­get that bull mar­kets will go up on a wall of worry. All I see is worry, people are not par­tic­i­pat­ing, but how long will they not par­tic­i­pate? I have no doubts that we have started the big­gest bull mar­ket that at least I will see

in my life­time. ND: In a bull mar­ket, the in­dex nor­mally dou­bles. Do you see that kind of a price ac­tion in 3-5 years? The in­dex will surely dou­ble and tre­ble. The ques­tion is how many times and in what time. If the in­dex dou­bles in five years from now, it will be very poor gain ac­tu­ally. I see it hap­pen­ing much faster. AF: Much faster mean­ing within this year or do you think it will be a wait of two to three years? I think earn­ings growth will ex­pand may be next year... from 15% to 18% to 20% as eco­nomic growth in In­dia ex­pands and bet­ter pol­icy and in­vest­ment come through. AF: Will 7000 (for Nifty) stay in­tact or could we go back to 6500 lev­els? I don’t see Nifty go­ing be­low 7000 and I re­serve the right to be wrong. ND: Ev­ery bull mar­ket has a new hero. You fa­mously said cour­ses re­main the same, horses they change. Where are the new horses go­ing to emerge from? I do not know. Let each in­vestor choose what­ever horse he wants. There is a buf­fet, there are a lot of dishes, eat what you want but do not overeat, Ul­ti­mately all sec­tors or mar­ket are go­ing to gain. ND: What is Rakesh Jhun­jhun­wala’s mes­sage to an aver­age in­vestor? Be­lieve in In­dia and in­vest in In­dia, (have) faith in god, pros­per in In­dia. ND: Last time when I met you, you said you see a lot of con­vic­tion in old econ­omy stocks. Your pur­chases like Prakash In­dus­tries or Ori­ent Ce­ment, looks like you are buy­ing econ­omy-re­lated stocks. Well, I am more into ev­ery­thing. I do not want to go into specifics. ND: Your big call is the in­dex should dou­ble in 3-4 years. The in­dex will dou­ble in three (years)… I mean, from 6300, I see the in­dex doubling in three years. I will be dis­ap­pointed if, in three years, we have Nifty be­low 12500.

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