Samvat 2075: The Nifty gained 4% during Samvat 2074, lower than the gains of the previous two Samvat years, while adding nearly Rs 3.5 lakh crore to its market capitalisation. The 5% rally in the past week helped the headline index to recover some losses after the market-wide sell-off during the period of July-September 2018 made the NSE Nifty 50 tumble below the 10,200-level and wiped out all gains of the year.
While a number of factors like rupee depreciation, global market volatility, and surging crude prices kept investor sentiment jittery, ace investor Rakesh Jhunjhunwala maintained that the Indian market has been doing well, adding that a huge rally has been witnessed in the last few years. “I do not see a reason for fear in the market,” Jhunjhunwala told CNBC TV18 in a recent interview, adding he has always been bullish on India even though oil and rupee have been the biggest factors for the recent market decline.
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Speaking on the occasion of Diwali about the Indian markets and the way ahead, Jhunjhunwala said he expects banks and NBFCs to do well in the future, along with the insurance sector. The Dalal Street king said he remains positive on infra stocks, especially after L&T’s second-quarter results. Jhunjhunwala said the quarterly corporate earnings ‘season has not been bad’, indicating a positive performance from the companies. He added that some opportunities in banking, NBFC and pharma stocks are expected. For pharma, Jhunjhunwala said the sector is looking ‘interesting from a 2-3-year perspective’.
Speaking about key risks to the markets, Jhunjhunwala has pointed out the factors as global trade wars, an increase in the US interest rate and dollar strength. According to Jhunjhunwala, the rupee has to stabilise between 70 and 75 against the US dollar, while a big downward correction may be seen in oil, expecting it to stabilise between $65 and $70 per barrel. Jhunjhunwala asserted that the market has absorbed the foreign institutional investors (FII) selling ‘very well’.