Veteran investor Rakesh Jhunjhunwala said that the biggest threat in the long term to the Indian economy and the stock market is the possibility of war with Pakistan. He said that Nifty50 can reach levels ranging from 90,000 to 1,00,000 by the year 2031. But the biggest obstacle that can come in this is the state of war. With this, if the second wave of Corona virus epidemic comes, it will also have a bad effect on the market. Rakesh Jhunjhunwala also termed the proposed central bank’s Bad Bank as non-essential to tackle the problem of NPA.
Rakesh Jhunjhunwala said that the profitability of companies in the country is at its lowest level against GDP. He said that India’s savings amounted to more than $ 550 billion, but equity accounted for only 5% of this enormous wealth. He said that we have the lowest leveraging corporate sector in history. Appreciating the General Budget 2021, he said that the budget represents New and Resurgent India. The government is making policies that it should formulate and this will give a boost to the corporate sector as well as social justice.
Bullish about India’s growth story
He said that he is bullish about India’s growth story. Rakesh Jhunjhunwala hoped that in the next financial year, the country will grow at a rapid rate of 10 to 11% and the GDP growth rate will be between 6% to 10% in the next 3 to 4 years. He said, I believe that India will achieve double digit growth in the long run. For this, we have developed mediums so that money can be invested in the market. We have very good corporate governance and our mutual fund industry is also tremendous. So I see no reason why India could not achieve double digit growth consistently.
What is the biggest risk for the stock market
Rakesh Jhunjhunwala said that there is only one obstacle in India’s fast economic growth for long term, that is the possibility of war with Pakistan. Along with this, he also hoped that the second wave of Kovid would not come in the country. He said that the government and the people are more aware now. He said that 85% of Corona cases are coming from only two states – Maharashtra and Karnataka.
No need for bad bank
Rakesh Jhunjhunwala said that the government has announced to set up an Asset Reconstruction and Management Company, or Bad Bank, to manage the NPA, which will manage the stressed asset of the banking system. But in my view there is no need for this bank. Jhunjhunwala said, since the problem is now solved. The government and RBI have provided more than what most banks wanted.
This prediction for Nifty
Rakesh Jhunjhunwala said that Nifty50 can reach 90,000-1,00,000 levels by 2030. This means that Nifty50 can go up by about 580 per cent from the current level. This is not the first time Rakesh Jhunjhunwala has projected so confidently. In 2014, Rakesh Jhunjhunwala said that Nifty can touch a level of 1,25,000 by 50 years 2030. In an interview to CNBC, Rakesh Jhunjhunwala said, India may be shocked by the stock market boom. Market depth will depend on several sectors. People are underestimating the changes happening in India.
Will never invest in bitcoin
Rakesh Jhunjhunwala said that he would never invest in Bitcoin. He said that this digital currency should be banned. He said, I will not buy Bitcoin for even 5 dollars. Only the government has the right to launch currency. The fluctuation of 1-2% in the dollar is also reported, while it keeps increasing by 10-15%. I would not like to invest in everything. You should invest in something that interests you. I will never buy Cryptocurrency in my entire life.