RJ Once Again... Best is Yet to Come

Friends,

The Big Bull rakesh Jhujhunwala has once again repeated his wordings..... The Best is yet to come.... and that very true... 8 months back he told that there will be Multi decade Bull run yet to come... and once again he said the same things... he is maintaining on his views about long term bullishness of india markets....

For my readers....I am pasting the exact excerpts oh his internew with ET

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At 18000 plus, how would you characterise the market?

Bullish. One with opportunity, with attended risk. Rather than looking at the market levels, we should look at the Indian economy and I see no reason why India's growth will be reversed. Of course, there are attended risks internationally. So overall, the picture is good.

But are the low hanging fruits being plucked?

It depends on what kind of time period you are looking at. If you are looking at 3 to 5 years, there is tremendous opportunity and I do not think even the low fruits have been really hanged because you have seen good news stories coming out every year. The fact that people are feeling difficult and they feel there are no news stories and markets will refuse to go down, is a healthy sign.

How would you describe the market earnings? They surprised us or are we in 2007 when it was a power of liquidity which took markets up?

I do not understand this liquidity and all. Markets go up not because there is abundance of buyers, but because there is a lack of sellers. So markets always go up because there are more buyers than sellers or they go down because there are more sellers than buyers.

So I do not understand all this liquidity because I do not know on what basis you can create fair value and then you can say it is overvalued and it is undervalued. After all, it is the way you see it. So I do not know whether we are in somewhere like 2005, 2006 or 2007.

Do you think we are in that stage of disbelief because retail participation is low? If you look at futures and options open interest also, that is not high by any yardstick.

I do not know about the future interest, future positions and all. But I know one thing, I do not think there is retail participation at all and there is a lot of money waiting on the sidelines. Socially people are not participating in the markets. There is a fair amount of disbelief.

What is Rakesh Jhunjhunwala, the trader, thinking?

Trading is momentum and the markets - although the Nifty and some of these heavyweights are not doing well - are gaining gradually. But they are gaining. So I am a bull at the moment.

Let's say for the next 3 to 6 months, does the directional call for a trader has to have a long bias or a short bias?

I can tell you one thing that there are no directional calls for 3 to 6 months. Directional calls in trading can change overnight, but as circumstances play out today, markets are going up. It is wholly your trade challenger or right now the person who feels that the market is at a turning point will be a bear today.

What is the possibility that we can make a new high in this financial year itself?

I will read the probability high.

Can we make a new high and stay beyond that mark, which is 21000?

I do not know if we can make a new high. I personally think we can, but even if we do not make a new high, I know one thing that direction of the market is upwards and with a good range. Although the international scenario is unknown, my personal opinion for the next 3 to 9 months is that I do not see any adverse thing happening.

Why do you say that?

Because I feel the point where this growth is really going to slow down is still 9 to 12 months away.

Do you think all the problems have been pushed under the carpet and they will not surface up for another 6 to 12 months?

I want to say one thing. Is it a crisis in the system or is it a crisis of the system? So it is not that the world has not borne sub par growth, we will bear it. The world is not going to fall as long as there is confidence in governments and in banking institutions and the financial system.

I do not know if world is going to turn upside down and I do not see India going at less than 8-8.5-9% and if we take the scene on infrastructure and other reform, I do not think world can go at 1.5 and India can grow at 12.

The fact that we are at a 3-year high, Chinese markets are marching towards a new 52-week low. There is a disconnect there. In 2007-2008, the story was different. All markets were going up together and all markets were coming down together. Can this disconnect really last?

It is lasting.

Do you think it is here to stay?

If the Indian economy performs and with what Manish said that day that with the underexposure of equity in India, I see no reason for Indian markets to go down.

On a personal side, you have just turned 50. So how will Rakesh Jhunjhunwala in his 50 be different from Rakesh Jhunjhunwala in his 40s?

Rakesh Jhunjhunwala is going to live more for himself now. I reflected a lot, I thought a lot on my 50th birthday. It has been one of the most important birthdays in my life, not in terms of celebration but in terms of retrospect. I want to know what I enjoy. I want to give more time to my children, my family, to my health.

What Else is remaining now?????????