Ace investor Rakesh Jhunjhunwala said that the gains made by him in 2017 was exceptional and unlikely to come by, in the future. “I had a 70% rise in 2017. It’s never going to last. If Rs 100 becomes Rs 170, it’s certain that Rs 20-30 will go. We should not consider these as gains of 70% at all in the first place. This 70% is not going to come in my lifetime,” Rakesh Jhunjhunwala told in an interview to ET Now.
Interestingly, In 2017 alone, four of his top stocks have more than doubled investor wealth. Most notably, Rakesh Jhunjhunwala’s favourite scrip Titan has surged by more than 160% in the year. The surge in the shares of Titan alone may have made the ace investor richer by at least Rs 3,500 crore, in the previous year. However, in the recent times, the investment maestro has cut his stake in the company.
Taking stock of the current situation in the domestic stock market, Rakesh Jhunjhunwala said he doesn’t feel it’s a bear market. “I don’t agree to the point that we are in a bear market. At any stage, there will be some stocks that underperform, while some may outperform. The Nifty has peaked at 11,300. The markets are now consolidating to make second phase of a rise,” he said. Amid the midcap carnage, Rakesh Jhunjhunwala noted that despite the recent correction, there are excesses. “There are a lot of excesses in the midcaps. We had excessive valuations, and I was shouting from the rooftop that this is not going to last. We have seen tremendous rise in the mid caps, stocks have gone from Rs 100 to Rs 500. The market have given up 40% of that gain, but still the rise is tremendous,” he noted.
In the same address, he called for a more mature outlook to digest losses in the stock market. “The maturity is in understanding this, and not getting too excited about the gains. If stocks fall beyond a point, which I feel as reasonable, then it’s a temporary loss for me. I feel we need a more mature outlook, and filter the reality from the noise,” he said.
According to Jhunjhunwala, the stock markets are preparing for a second phase of up move. “Everybody is buying mid caps so let me also buy, this is not the right approach. At this level of corporate profits to GDP, at this level of investor participation, I think the Indian economy is going through a phase of upturn. Capital investment is reviving, demand is reviving. I think because of the NCLT process, the credit discipline in this country will improve,” he told the channel.