Ace investor Rakesh Jhunjhunwala on Tuesday dubbed the current Covid crises a “temporary blip” and said India is poised for a long bull market.
“Despite the second wave. We will have double-digit growth. We are in the midst of a big bull run. India is beautifully placed to log double-digit growth,” he said during an event organised by AIMA.
Asked if the ongoing correction in the markets would extend further, he said: “That is difficult to predict. If we peak at around 250,000 cases, I don’t see the market fall much. If it becomes uncontrollable and goes up to 600,000 a day, then the market may fall.”
Jhunjhunwala said the lows made in March 2020 was one of the three big turning points in the Indian stock markets. He said the March 2020 lows was a defining moment like the 1989 Union Budget, and the low after September 11, 2001, attacks. “The Covid lows in March were the biggest opportunity. The risk-reward was so much in your favour. Anything you bought is double or triple of the bottom,” he said.
The ace investor remains optimistic about the Indian economy, and said the metals sector will be a key beneficiary. He said the demand for metals will be huge and that investors have largely ignored the sector in the past 10 years.
He also said there is a huge divergence in cement and metal stock valuations, considering their prospects.
The most battered stocks in the mid- and small-cap universe will give the best returns, Jhunjhunwala predicted.
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First Published: Tue, April 20 2021. 19:20 IST
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