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Last Updated : May 21, 2019 02:01 PM IST | Source: Moneycontrol.com

NDA to get around 300 seats, but market unlikely to return 30% in 2019: Rakesh Jhunjhunwala

Apart from elections, Jhunjhunwala said a big uncertainty for the market is friction between Iran and the US

Rakesh Jhunjhunwala, popularly known as the big bull of D-Street, in an exclusive interview with CNBC, said that the National Democratic Alliance (NDA) should be able to get around 300±10 seats in the Lok Sabha.

Exit polls for 2019 general elections suggested a clear majority for the Modi-led NDA, which led to a monster rally on D-Street on May 20. Both Sensex and Nifty witnessed their best day in 10 years.

The exit polls accord an average of 304 seats to the NDA and 118 seats to the UPA, with the rest of the seats going to other parties outside of these two pre-poll alliances.


The Nifty may have made a bottom around 11,000, said Jhunjhunwala adding that the exact top or bottom levels can’t be predicted.

Nifty delivered more than 30 percent in 2014 when the Modi-government came to power. But, Jhunjhunwala says the same euphoria is unlikely to be repeated.

“Market might not give 30 percent in 2019, but I think the market will be good. If NDA gets a clear majority, 10,750-11,000 can be seen as a crucial bottom,” he added. Jhunjhunwala further added that the expectations from the Modi government's second term are moderated but results will be far better.

Jhunjhunwala said democracy is the biggest hindrance to India's growth, but it is necessary. "I don’t think India's growth is linked to global growth because India’s exports are far lower than GDP," he said.

India has had sub-par capital expenditure for the last five years. But, the credit culture in India is improving because of the Insolvency and Bankruptcy code (IBC). “Look at the way integrity is coming to the firms, and people with integrity are creating the most wealth,” said Jhunjhunwala.

Apart from elections, Jhunjhunwala said a big uncertainty for the market is friction between Iran and the US. Commenting on the trade dispute, the big bull is of the view that the market has already priced in the Sino-US trade war.

Update: An earlier version of the story erroneously stated that Jhunjhunwala had given the interview to CNBC-TV18. He gave the interview to CNBC instead.
First Published on May 21, 2019 10:21 am