FY12 has been worst trading year of my life: Jhunjhunwala

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FY12 has been worst trading year of my life: Jhunjhunwala

Billionaire investor Rakesh Jhunjhunwala, who's often referred to as India's Warren Buffett, says, the financial year 2012 has been, so far, the worst trading year of his life.

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Billionaire investor Rakesh Jhunjhunwala, who's often referred to as India's Warren Buffett, says, the financial year 2012 has been, so far, the worst trading year of his life.

However, he is not giving up hope. He still believes that the market is in a corrective phase of a long-term bull run.

In an interview to CNBC-TV18's Udayan Mukherjee, the big bull of Dalal Street says, although the market is showing strength, he has had the worst trading financial year of his life starting from April. And that's what makes him cautious or confused. "I still don't think that there is a clear picture. I think we will still have to wait for events to unfold."

Below is the edited transcript of his interview. Also watch the accompany videos.

Q: We have approached 5,200 with some strength, do you think things could turnaround now or you are not that optimistic in the near-term?

A: I have never been so confused in my life. My personal perception is that there are three important factors for the market. One is what happens in the western world. Second is inflation. Third is government action. The most important factor is inflation.

The fact that government does nothing disturbs me. In 1999 or 2000, when Musharraf had visited India, at that time, there was big talk of a rift between Mr Vajpayee and Mr Advani. The political feeling then was very much similar to what it is today. But that came to passé very fast.

Elections are still two-and-a-half to three years away. So, whatever thoughts we have on the government may come to passé in the next three-six months.

As far as the Western world is concerned, I think nothing negative is going to happen. Nothing negative beyond what the market is expecting is going to happen in the next six-nine months.

I don't think any bank or any government is going to easily default. Defaults take place, when people are unaware of things. At the moment, we are very alert. Markets, to an extent, have also discounted the worst.

As far as inflation is concerned, the Reserve Bank is acting very sensibly. They are expecting that inflation will moderate after December. So, atleast until December there are no hikes.

I don't see any reason why inflation will not moderate just because of the base effect. If prices were to be kept at September levels, if there was to be no price increase whatsoever in the level, the inflation will be 2.3% by March. So, I don't think we are going to have more than 3-4% price increases upto March.

Q: You seem to have a bullish kind of disposition on all the three factors. Then why are you confused?

A: Markets are showing strength. They are reacting positively to negative news. But I don't know, maybe I have had the worst trading year of my life, financial year starting from April. And that makes me cautious or confused.

I still don't think there is a clear picture; I think we will still have to wait for events to unfold.