Monday, November 5, 2012

Jhunjhunwala sees new highs over 1-2 yrs; likes bank, infra

Big Bull Rakesh Jhunjhunwala expects the market to make new highs over the next 12-24 months, and feels the ‘mother of all bull markets’ is still ahead of us. In an interview with CNBC-TV18, Jhunjhunwala says he is betting on a correction in commodity prices. And while second quarter corporate earnings may not have been spectacular, it does show that companies are adjusting well to the current economic downtrend, says Jhunjhunwala.

He thinks corporate earnings can grow at 15-17%, and sees the Indian retail sector growing at a fast clip. However, he feels the retail sector is fairly valued at this point of time. Jhunjhunwala is bullish on sectors like banking and infrastructure and sees digitization as a game changer for broadcast companies. He remains bearish on developed markets and feels the macro economic conditions there are not conducive for a bull market.

"All the India-centric sectors will do well. It is a buffet bowl; there are so many dishes available. Do not eat too much but surely do eat."

"I would say, rather than sectors I would like to investments now, I am trying to put it in two parts. One is which companies are grown, mature, business models are good, earnings are predictable, question is how much it will grow."

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