Billionaire investor Rakesh Jhunjhunwala doesn't expect the Indian stock market to rally over the next two-three months, but it may spend this time laying a strong foundation for the next bull run.
Indian equities touched record highs as it became clear that Prime Minister Narendra Modi is set to return to power with an even bigger mandate.
The National Democratic Alliance is ahead in more than 338 seats, while the main opposition Congress and its partners are leading in 91 seats as of 1:30 p.m. (Catch live updates here)
The benchmark S&P BSE Sensex crossed the 40,000 milestone, while the NSE Nifty 50 Index hit 12,000-mark for the first time ever as the election results rolled out. The indices, however, pared most of their gains as of 2:00 p.m. (Catch live updates here)
Jhunjhunwala expects the mid- and small-cap stocks to outperform their larger peers in the next 18 months. “I am not worried about anything,” he said. “They [equities] will give returns better than nominal growth.”
On U.S.-China Trade War
The tiff between two of the world's largest economies, according to Jhunjhunwala, is more of a geopolitical issue rather than a trade war. And India can benefit from it, he said.
“India can get a lot of capital. India has one of the lowest levels of exports to GDP,” he said. “I don't think that the world economy will slow that much, in any case India won't be affected.”
Watch the full conversation here:
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