Markets may hit a new high, Titan best pick: Jhunjhunwala

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Markets may hit a new high, Titan best pick: Jhunjhunwala

In an interview with CNBC-TV18’s Udayan Mukehrjee Jhunjhunwala said that Euro has been overplayed while India’s economic growth cannot be suppressed. According to him at 5400, lots of people are left out of the rally as they are waiting at the sidelines for a buying opportunity.

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ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

On July 22 when Nifty touched a 30-month high of 5442, experts and investors - both foreign and domestic, began betting high on Indian markets which has shown a remarkable recovery. With corporate India announcing generally good first quarter results, the scenario appears promising and inviting.

India's own Warren Buffet Rakesh Jhunjhunwala is the original bull of Indian markets. His optimism is palpable when he says: "The way the market is technically rallying and if there is a good monsoon, I wouldn't rule out 6300." 

However, according to him at 5400, lots of people are left out of the rally as they are waiting at the sidelines for a buying opportunity. His acumen in picking stocks has influenced many. On turning 50, Jhunjhunwala laments on the stocks with which he is emotionally attached to and which helped him made money.

In an interview with CNBC-TV18's Managing Editor, Udayan Mukherjee, Jhunjhunwala said that Euro is being overplayed. He said that India's economic growth cannot be suppressed.

Following is the transcript of an interview with Rakesh Jhunjhunwala on CNBC-TV18. Excerpts:

Mukherjee: Do you think we are breaking out of this range, the one 12-15 month range that we have got stuck?

Jhunjhunwala: I think we will breakout, whether we have broken out or not, ultimately we will. And I also think that  Euro is being overplayed. The manufacturing index in Europe has surprised  everyone. I think whatever crises have been created by Euro and by the Chinese perception, I think that is getting reversed decisively.

I personally think that there is going to be a double dip, may not be a recession, but it will be slowing of growth. But I think it is better for India that the world grows at 1% and India grows at 8%, rather than the world grows at 2%, and India grow at 9%.

I think India's economic growth cannot be suppressed. I think we have good government, they would do something, at least there is a will. I don't know how much they will be able to do. So I remain the eternal bull. At the same time, I personally feel that there is going to be uncertainty maybe 12-24 months later.

Mukherjee: 12-24 months later?

Jhunjhunwala: Could be because today the problems in Greece, Portugal or in Spain are for real. Now the question is when will they blow off. See one thing is a fact, I feel personally that American growth cannot be more than 1-1.5% for the next five years for the simple reason they have to save, and they have to under leverage. But even if growth slows down, if software exports hold and if commodity prices are reasonable, what is India going to do with the world.

Mukherjee: So you think you could have a 1% US growth in the next one year and India could be heading towards a new high?

Jhunjhunwala: Absolutely, why not?

Mukherjee: Do you think it will happen?

Jhunjhunwala: I think it can happen.

Mukherjee: So when will you see signs of that?

Jhunjhunwala: We are already seeing signs today, every broker whether it's Goldman Sachs or Credit Suisse, all have downgraded US economic growth. India is now at 24 months high, China is rebounding. I have learned in life when anything tries to outperform or go against public opinion, the initial reaction is always contempt, and people join the party only at a later stage. So I think that could be happening in India.

Mukherjee: Do you think a lot of people are left out at 5,400 plus, a lot of people are still out?

Jhunjhunwala: What do you think?

Mukherjee: I think yes. What do you think?

Jhunjhunwala: I also think the same.