Ace investor and partner of Rare Enterprises, Rakesh Jhunjhunwala, also called ‘The Warren Buffet of India” is still bullish on the Indian markets and sees Sensex touching 25,000 level by 2012. However, he is of the opinion that world equity markets are bound to get shaken in the wake of ongoing subprime mortgage issue and the next few months will be tough for them.
Addressing Finance Continuum, 2007 at SJMSOM, IIT Mumbai, he said that crisis gives best buying opportunities. Subprime issue has hit the global markets severely and there has been a negative sentiment for past two weeks across the globe. He also feels that Indian markets will be less affected than the global markets including Asian markets.
Jhunjhunwala further added that fundamentals are still strong and Indian markets have all the ingredients to sustain the growth.
Expressing his views on overseas investment, he said that Indian markets have still to offer a lot. Jhunjhunwala has plans to explore overseas markets after 2012 and also wants to build up organizations.
Talking on house-hold savings and its importance on equity markets, he predicts that by 2012, over USD 57 billion from house-hold savings will be invested in the equity market. If his prediction comes true then Indian markets will not face liquidity crunch issues. Currently, house-hold savings investment in equity market is around USD 12 bn.
- The Economic Times has covered this news here: India’s equity returns can be delayed, but not denied
- An another note on his visit is available here.
- Another blog covers this topic here.