Rakesh Jhunjhunwala says Indian market is in state of correction; sheds light on midcap stocks
The ace investor believes that Indian economy is going into an upturn, capital investment is reviving, and demand is reviving.
Rakesh Jhunjhunwala, the man referred as Warren Buffett of India, has always been considered as a wise and patient investor, with his understanding in Indian markets and specifically equities, he has turned some stones into gold. Jhunjhunwala today in an exclusive interview with Economic Times sheds light on domestic equity indices which are currently at booming stage.
When asked about whether we have entered into a bear market, Jhunjhunwala said that in any market at any stage some stocks are going to underperform and some are going to outperform. The index went up from 4700-4800 to 11,000. Today, also it is around 11,000, peak of 11,300.
In stock market, Jhunjhunwala said, the maturity is in understanding and not getting unnecessarily excited about the game. Similarly, when stocks fall, they fall beyond a point which is reasonable.
Jhunjhunwala told ET, “We need a more mature outlook and we need to filter the reality from the noise. Let me buy midcaps as everybody else is buying it and making money is not the right approach.”
He further told ET, “I do not think we are in any kind of bear market and even in the midcaps you have had tremendous rises, stocks have gone up five times from 100 to 500 and they have given away 40% of that and still the rise is tremendous.”
He reportedly said, “I do not agree we are in any kind of bear market. We are in a state of correction and consolidation.”
The ace investor believes that Indian economy is at going into an upturn, capital investment is reviving, and demand is reviving.
Jhunjhunwala, 58, who is said to be one of the most successful equity investors in India, turned his investment of just $100, when he began trading, into a massive $2.9 billion. He belongs to a middle class family and began his first trading on the BSE in 1985. Since then, he has selected trading as a full-time profession. With such a long experience, for Jhunjhunwala making money from stock exchanges is like a child's play.