Covid-19 crisis over-hyped, India will soon see next bull run: Jhunjhunwala
Ace investor Rakesh Jhunjhunwala says India is at the beginning of the mother of all bull runs and that the government would increase expenditure once the lockdown ends.
In an interview with ETNOW, the Big Bull said every bull market tends to be bigger than the previous one.
“Bull markets are Test matches and not 50-over games,” he said, noting that “markets tend to shake you up before a bull run.”
The March selloff, the billionaire investor said, took a nasty toll on investor sentiment and he would not be surprised if the market consolidates from here on.
“The recent market rally,” he said, “is in anticipation of a faster return to normalcy.”
The Big bull said he does not see significant downside from here on and the ongoing bull market should lead to PE and EPS expansion.
He said hardly any market globally has made money in last three years.
“I think the Covid-19 crisis has been blown out of proportion and has created an unnecessary fear psychosis. After all, it’s a flu, and not plague or cancer. I do not think anything will change in the long run. We will travel and go back to restaurants,” he said.
Jhunjhunwala, often referred to as India’s own Warren Buffett, said the government was waiting to process the Covid-19 damage and would do what is needed going ahead.
Most companies will survive this Covid-19 challenge and select ones will swing to growth quickly post crisis, the Big Bull said. “Some companies will have a fight to fight the revival phase,” he said.
The recent fall in banking stocks was an expression of uncertainty, Jhunjhunwala said, adding that “the real NPA picture will get clear only around December.”
Jhunjhunwala expects financials to remain rangebound. He sees consolidation in NBFCs but does not expect the housing finance sector to be hit badly.
He felt there has been a lot of assumptions over a possible spike in bankruptcies, and said one needs to take note of the fact that the number of customers availing EMI moratorium at State Bank of India is much lower than the other so-called Big Banks.
Truth Is Bitter
Yes Bull run of Corona ...!!!!!
over-hyped ? Is he brain dead ?
NEVER go by herd Mentality and follow such ADVISE from Market Players or EXPERTS who DO NOT read well any Market and predict such GLORY of the Future when the entire GLOBAL Markets and ECONOMY are ALL at HIGH SEAS and turmoil across the NATIONS
NONSENSE. MASSIVE WORLDWIDE DEPRESSION. PREPARE WELL AND IGNORE THESE NAUTANKIS
Where was this idiot these 2 months?
He said once that nobody can gauge the market now he is predicting.