Synopsis of the Interview with Mr. Rakesh Jhunjhunwala, legendary proprietary investor.
Many catalysts to trigger a bull run
CIO: Thank you, Rakesh, once again for this interview. It's always a great pleasure to take your views and most of the time we end up seeing these views materialising in a short period. I can say with some degree of confidence that you are a visionary because I have myself been witness to the vision that you articulated a couple of years ago.
My first question and that seems to be the question on top of everybody's mind is that the index has moved up a lot. The market moved up more than 50%. Where do you see the market heading from here and why do you see that happening?
Rakesh Jhunjhunwala: Thanks for your kind words. The history of markets and the history of economics tells us that markets and economics never change. Technology has not changed them and nor can time change them. Right from the South Sea bubble to the Internet boom, markets have followed a course. And no bull market can be born whether in a stock or a commodity unless the fundamentals support them. And it is my opinion that for the last 18 or 20 months India is on the threshold of a fundamental, structural and secular growth phase. The ingredients of this growth phase have been built for reasons which are historical, in that we are a skilled people and the fact that we undertook a liberalization program; cultural in the sense that essentially Indian culture is tolerant, and this tolerance allows us to accept change and technology, which I think is the hallmark of a modern society; plus political in the sense that we are a democracy. This has blended with developments like the irrelevance of geography, which has allowed Indian skill sets to be utilized at inter-continental distances.
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