Highlighting that the Indian growth story is just beginning to unfold, Rakesh Jhunjhunwala believes several of India’s traits including traditional and modern skills, tolerance, ability to foresee and accept change, savings habit, demographics and entrepreneurship are expected to go a long way in unleashing growth impulses in the coming years.
“There is absolutely no doubt about the future of Indian equity market; and if earnings go up, the market will go up too”, said Rakesh Jhunjhunwala, Partner, Rare Enterprises and India’s best known investor in the market. He was addressing members of the Indian Merchants’ Chamber (IMC) in Mumbai yesterday on the future of equity market.
“The combination of several special and specific traits means that the country will soon have double-digit growth. India has grown robustly in every decade since independence and it will continue”, he argued.
India’s huge savings are needed to flow into the stock market so that savers will enjoy the benefit of high returns; he said adding that the growth rate can accelerate with reduced bureaucracy and cutting down on unrewarding social expenditure.
The ace investor advised the participants to investment in the market, stay invested, but not to expect unreasonably high returns. Jhunjhunwala said he was bullish on the real estate sector as well as on pharmaceuticals and information technology.
Earlier, welcoming the special guest, Dilip Piramal, President, IMC, said ‘Jhunjhunwala is recognized as a legendary investor and is an inspiration to a very large number of investors including young Indians.’
Commenting on the criticism that there is no on-the-ground feel of India’s GDP growth numbers, Piramal asserted that buoyant direct and indirect tax collections provide sufficient evidence of healthy economic activity.