Ace investor Rakesh Jhunjhunwala, time and again dubbed as the big bull of Indian stock markets for being bullish on India’s growth story, today said he is frustrated.
Ace investor Rakesh Jhunjhunwala, time and again dubbed as the big bull of Indian stock markets for being bullish on India’s growth story, today said he is frustrated. Rakesh Jhunjhunwala said in an interview with CNBC TV18 that he wants the government of India to turn the coronavirus pandemic into an opportunity and bring in reforms; the most important among these, he said would be the ease of doing business. Jhunjhunwala, in his first public appearance since the beginning of the lockdown, said that the Indian economy can grow at unimaginable speeds if the businesses across the globe are lured into India with more ease of doing business.
While Rakesh Jhunjhunwala did not sideline the slowing growth of the Indian economy, he said, “the gross domestic product will no doubt be in the negative this year.” The big bull however, added that if he had heard the economists all his life he would have never made money. Jhunjhunwala said that India might be contracting this year but it can change that with reforms and repeatedly stressed the need for reforms. “What India needs for prosperity is just ease of doing business. If that can be created in India then this COVID will not matter in my opinion, Jhunjhunwala said. He added that he blames the Indian society for the lack of ease of doing business but went on to claim that this can very well be India’s 1991 moment again if reforms take the front seat during the coronavirus.
Rakesh Jhunjhunwala reiterated his long-term bullishness on the Indian stock markets while adding that no reforms could pose as one of the biggest challenges for the Indian economy and equity markets, along with an abnormal increase in cases of coronavirus. He added that the current surge in the share market could well be the start of a long bull market. Pharmaceutical stocks were on the big bulls radar as he compared them to Indian cricket legend Sachin Tendulkar. Rakesh Jhunjhunlwala said that pharmaceutical stocks are like Tendulkar on his way to hit a double-ton, but right now just at 40 runs, suggesting that the pharmaceutical stocks have a long way upward march ahead of them.
Repeatedly asking for reforms, Rakesh Jhunjhunwala questioned the moves made by various state governments to amend labour laws which he claimed were met with a rebuttal by the centre, asking why there was no coordination between the governments. The ace investor who has been a vocal supporter of the Narendra Modi government said that the Prime Minister needs to bring his words into action and bring visible land acquisition and labour reforms for India to progress. Rakesh Jhunjhunwala said that India should not look to bring in foreign firms to India only because they are leaving China, but should aim at making India an attractive spot for foreign investment, which he said needs ease of doing business.