India's telecom sector is not a good sector to invest in as it constantly requires investment, said ace investor Rakesh Jhunjhunwala on August 8, while adding that he remains 'very bullish' on PSU banks.
Speaking to CNBC-TV18 about what other sectors apart from civil aviation interest him, Jhunjhunwala said that he is very bullish on hospitals, corporate sector banks, and public sector banks.
The big bull further said that he is expecting provision write-backs in PSU banks to aid profits. The pricing power of banks will also likely go up as credit demand gains pace, added Jhunjhunwala. He added: "Those who can borrow are those who can lend and PSU banks have great power of gathering deposits."
Speaking on the digitization landscape, Jhunjhunwala thanked Mukesh Ambani for the changes he has brought about in India. He said: “The low cost of communication whether in voice or in data is what has caused digitization in this country and we cannot thank Mr Ambani more for this; I think this country has to remain eternally grateful to him for what he has done to the telecom sector.”
Ambani is the chairman and managing director of Reliance Industries Ltd (RIL), which, through its start-up incubator programme JioGenNext, has supported 170 start-ups that collectively raised over Rs 2,600 crore in early-stage venture capital since 2014.
While commenting on startups, Jhunjhunwala added: “There is more downside risk than upside opportunity in new age start-ups.”
The market veteran also said that "India is entering a golden period" and he expects the country's yearly GDP growth to be at 10 percent and added that the market will also grow at a slower pace. The business magnate projected that the IT services would grow at 10 to 15 percent for the next five years.(Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)