Ace investor Rakesh Jhunjhunwala needs no introduction. A chartered accountant and a billionaire investor and trader, he has made his mark in the Indian business community. India Today magazine described him as the “pin-up boy of the current bull run”, and according to Forbes, he was the 50th richest person in India with a net worth of $ 3 billion as of June 1st 2018. A man who sits on the Board of Directors of companies like Prime Focus Limited and Provogue India Limited must know a thing or two about the political situation and how it will affect the Indian market in the days to come. In an interview given to the Economic Times, Jhunjhunwala has said that Prime Minister Narendra Modi is all set to return to power in 2019. He also said that he wants the Bharatiya Janata Party to win in 2019 and for Narendra Modi to lead the government again. Jhunjhunwala said, “I personally feel we are far more bearish about the BJP’s prospects than the actual reality…I would want that Mr Modi comes back. This election is going to be fought on personalities. I can write and give you one thing, BJP will form government, with most likely Mr Modi at the helm.”
Rakesh Jhunjhunwala’s predictions usually come true, and the faith he has expressed in the Modi government shows PM Modi’s popularity amongst the business community. There had been some doubts over the response BJP would get from the business community in the upcoming elections but Jhunjhunwala’s statements have put them all to rest. Jhunjhunwala believes in taking calculated risks. His accurate predictions have made him attain a cult status amongst the investor community in India, which follow his moves closely and consult his investment decisions before making their own investment decisions. He advised, “I was very bearish on these public sector banks but I think even public sector banks can be considered now selectively.”
Expressing hope for the Indian economy, Jhunjhunwala further went on to add, “Look at the way the savings will grow. If India has to be a $10 trillion economy by 2030, savings will be $3 trillion a year. Even if 10% of that comes to the stock market, the share market will be at $300 billion. I want to point out that 32% of household wealth in US is now equity.” His words definitely point towards a better future for India under Prime Minister Modi, a sentiment which has been echoed by the business community in the recent years.
Rakesh Jhunjhunwala, towards the end of the interview, pointed tout that Tata Enterprise is a reliable investment ground. He further stated that 18-24% return from the stock market should be considered satisfactory. As parting advice, he also told investors to buy jewelry to get by difficult times. “It’s very important to buy jewelry. Our ancestors have told us to put 3-4% and I don’t even have a quarter percent. I know of many friends who have gotten past 5 years by selling jewelry,” he said.
