The country is poised to post a double digit economic growth and around 20 per cent corporate profits which will drive the bourses, stockmarket whizkid Rakesh Jhunjhunwala said.
Commenting on Wednesday’s volatile market and dramatic fall of the Sensex, Jhunjhunwala, also called the Warren Buffet of India, said, “nothing has changed.”
Although the Indian market had a slow growth, it was deep-rooted, he said.
However, for the Sensex to touch 50,000 it would take atleast another six to seven years, he said.
“I don’t have any rocket science but my bullishness stems from my feeling that India’s economic growth will be in double digits,” he remarked.
“Corporate profits are likely to be up by 18-20 per cent on an average while the present GDP growth of nearly 9 per cent will increase to double digits,” Jhunjhunwala said at a CFO summit in Mumbai on Wednesday night.
Skilled manpower, along with good corporate governance and continuing economic liberlisation, has set the stage for double digit growth, he said.
India had the youngest society in the world and this demographic pattern would continue for the next 40 years, he said, giving India an advantage vis-a-vis other countries of the world.
On the US economy, the big bull said that ?there is going to be big slowdown in the US market?.
With reference to the ongoing rupee appreciation, Jhunjhunwala said that the currency’s appreciation should be viewed as not just its appreciation but rather as a depreciation in the US dollar.
Commenting on the Indo-US nuclear deal, he said that strategically the US wanted to be closer to India and ?the nuclear deal will be an official recognition of India as a nuclear power?.