Markets should not tank more than 10% from here on:Rakesh Jhunjhunwala

September 27, 2011   ·   0 Comments

Earnings forecasts for US companies are starting to feel the pain on Wall Street and in the broader economy as the odds of another recession rise. But billionaire investor Rakesh Jhunjhunwala feels that investors should capitalize on the Indian growth story.

www.stockssavvy.comAccording to him, two things might work in favour of the markets.

1. Good monsoon and a fall in commodity prices.

2. If inflation can be tackled, commodity prices would come down further and India will likely see a “peaking of interest rate hike. And if interest rates come down, India will do very well.”

Markets across the world are tanking. Financial and investment gurus are talking about a double-dip recession. Greece is on the verge of a default and the fall of Eurozone is on everyone’s mind.

Indian equities have reacted in sync with their global counterparts and Europe’s debt problems have resulted in further selling of stocks this week. Foreign institutional investors have pulled out nearly $22.39 million worth funds in the week ended Friday, and the market is already down 200 points today.

However, Jhunjhunwala believes the market should not drop more than 10 percent from current levels. “The near-term expectations are that it [Nifty] will not break the last bottom, which was around 4700-4750,” he reiterated.

Bullish on Indian equities Jhunjhunwala said, “We have good economic growth, vast savings and under exposure to stock markets. Forget whether the foreigners will buy Indian equities — what choice do the foreigners have? Will they invest where the growth is 1 percent or will they invest where growth is 9% ”

He further said with good economic growth and trading systems India has efficient supervisions.  “You are creating the institutions by which you channelize money into the stock markets, which are mutual funds, insurance. Then why is money not flowing into markets?”

[poll id=”4″]

Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

More Posts - Website

Follow Me:


Recommend on Google