The big bull of D-Street, Rakesh Jhunjhunwala said investors should not get worried about one day of correction as “we are far away from the peak”. Nifty is more likely to double in the next 4-5 years, he said in an exclusive interview with CNBC-TV18.
The bull market will only eclipse when three factors are present — valuation froth, commitment froth and when there is bad news, he explained.
Elaborating on them, Jhunjhunwala said just by valuation froth, bull markets will not end. By commitment froth, it means that there is a lot of leverage buying, which is still not there. The third factor is bad news and when investors sell on the bad news, there is no buyer.
“There may be valuation froth right now, but there is no commitment froth. There is bad news and when investors are selling, they are able to find buyers. So, I think, we are far away from a market top,” said Jhunjhunwala.
Congratulating PM Modi-led government on completing three years, Jhunjhunwala said that he (Modi) is preparing India for a big change. “The effect of his policies will take time, but I don’t think it is 2-3 years away and (only) then we would see explosive 10-11 percent growth,” he added.