Market has bottomed out, this is a good time to buy: Rakesh Jhunjhunwala

Endorsing government’s economic policies, ace investor Rakesh Jhunjhunwala today said the Modi government has performed very well and the country will surely achieve the target of $5 trillion in the given time.

“I support Prime Minister Narendra Modi on what he is doing. He has delivered on his promises made to his constituency,” Jhunjhunwala said in an interview to NDTV.

Talking about stock markets, Jhunjhunwala said that the indicators are suggested that markets have bottomed out, particularly the mid-caps and this is a good time to invest in the market.

He said the indicators are pointing towards a turnaround. “We have a much better monsoon this year. Banks are flushed with funds. Bank credit will grow by 15% and we have come out of NPA cycles,” he said.

“We are seeing the beginning of a turnaround, but it will be slow,” he added.

When asked about the reforms government can undertake to fuel the economy, Jhunjhunwala said government should think long-term as the short-term boosters don’t help the economy much.

Suggesting some measure to boost long-term growth, he said government should dismantle the agriculture produce marketing companies, provide guarantee for the loans, work on ease of doing business, kick start infra spending and pay discoms on time.

However, he countered economists demand for stimulus in form of big infra spending. He said big infra spending push is unrealistic in Indian scenario.

“The clearance for new projects takes time and it takes long time to implement the infra spending,” he said.

In a more radical suggestion he said government should dismantle the public sector companies.

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