Rakesh Jhunjhunwala believes a bull market is incoming; these sectors get his backing

Billionaire investor Rakesh Jhunjhunwala believes that with India walking the talk, when it comes to big reforms, domestic markets are now staring at a typical birth of a bull market. In an interview with NDTV, the big bull said that the macro indicators and market movement signal towards a bull market where he believes the pharmaceuticals, infrastructure, and information technology sectors could stand to benefit the most. Jhunjhunwala had earlier said that coronavirus is an opportunity for India to bring in reforms, adding that India needs to improve its Ease of Doing Business ranking.

The ace investor said that India has taken up a number of reforms in the last few years, which has helped bring in a lot of efficiency into the corporate world. Bullish on India’s growth story, Rakesh Jhunjhunwala said, “This is a typical birth of a bull market where you have a changing country, you have a deep fall in growth and everybody is perplexed by the rise.” The big bull said that India’s story is different, having low levels of corporate profits to GDP and very low household exposure to equity. According to a recent report by brokerage and research firm Motilal Oswal, American households have the highest exposure of equity assets in their financial balance sheet at 45% while Indian households have only 14% exposure. 

In the world post the pandemic, Rakesh Jhunjhunwala said that as the world deals with the coronavirus pandemic, a digital revolution could be in the offing, where he believes India stands to benefit the most. Pharmaceuticals have been Rakesh Jhunjhunwala’s long term bullish bet and reiterating that he said that India’s pharmaceutical sectors could be a world leader in the post coronavirus world. 

Earlier this year, Rakesh Jhunjhunwala said that India needs to work on reforms to capitalise on the opportunity that the pandemic has brought. Talking about the agricultural reforms, the ace investors said that the developments around the reforms show how difficult it is to bring about reforms in India as he compared them to the 1991 reforms. Adding to the list of reforms needed in India, he stressed on the need to sell the public sector entities, improving Ease of Doing Business ranking, and the need to reform land and labour laws. 

Talking about the macroeconomic condition, Rakesh Jhunjhunwala said that the reforms being brought about have a price to pay. He added that RERA and GST might be criticised now but will soon turn beneficial. The coronavirus pandemic has been wreaking havoc across the globe and could continue to do so until the vaccine comes in, Rakesh Jhunjhunwala said while adding that the economic activity will move up despite the virus.