Big Bull Rakesh Jhunjhunwala Green Flags Indian Stock Markets


Rakesh Jhunjhunwala remains bullish on domestic stock markets even as Dalal Street, along with its global peers, faces multiple headwinds. In an interview with CNBC TV18, investor ace Jhunjhunwala who has just entered the aviation space with Akasa Air, says domestic stock markets will grow regardless of global developments. Despite his continued support for Indian markets, he predicted Dalal Street’s expansion would be slower than expected.

The ace investor is one of the most vocal proponents when it comes to investing in India. Talking about the spaces he thinks could work well in the future, Rakesh Jhunjhunwala said that PSU banks were his bet as he believes credit will increase and the consequence will be an increase in banks’ pricing power. The power of PSU banks to collect deposits is its betting logic. In his portfolio, Rakesh Jhunjhunwala holds Canara Bank shares worth around Rs 800 crore 2%. Other financials in the big bull’s portfolio are private sector lender Federal Bank and Karur Vysya Bank.

The ace investor Rakesh Jhunjhunwala also revealed his interest in the hospital sector because it is a very important element, and if health insurance increases, the use of hospitals will increase and it is difficult to manage hospitals. Its confidence in the hospital sector is evidenced by its 4.2% stake in Fortis Healthcare at the end of June 2022 and Star Health and Allied Insurance Company.

With India’s successful 5G spectrum auction and Reliance’s Jio holding the majority of the bandwidth, Jhunjhunwala doesn’t seem interested in the telecom sector. However, it looks positive about India’s pursuit of digital revolution and growth in the IT space. He is also positive about the potential of the sector while highlighting the role of Reliance Industries Chairman Mukesh Ambani in enabling low-cost communication.

The reason why Jhunjhunwala chooses not to invest in the sector as it requires constant investment with no real cash generation. He said in the interview that the IT services space will grow 10-15% over the next five years regardless of the recession.

During the launch of Akasa Air, Jhunjhunwala explained his bet on the aviation sector, saying that India will need 2.5 times the plane it currently has as passengers will increase from 14 crores to 40 crores over the next four years, a prediction made by the Minister of Civil Aviation. The man believes that as incomes in India increase, discretionary spending will increase and help the industry grow as Akasa Air is a competitive airline.

One thing that Rakesh Jhunjhunwala particularly rated about Akasa Air is that it is a frugal airline, not a low cost one. He mentioned the airline’s impact on the aviation industry, prompting competitors to order new chairs in response to chairs on Akasa flights.

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