Rakesh Jhunjhunwala Forecast for Indian Stock Market: Suggests Worst is over for Indian Mkt

1. Rakesh Jhunjhunwala, the Indian Warren Buffet and stock guru is of the opinion that Indian equity market may be out of the dead woods. He is of the opinion that the recovery is in offing as companies in the Sensex are valued at less than half their four-year average. He further added that India has a great resilience and thus investors will look beyond last month’s terror attacks. Moreover Rakesh Jhunjhunwala is of the opinion that country is growing faster than almost every other market. He is of the opinion that India will be again in the buoyant mood in coming next 4-5 years as India is supposed to grow by double-digit economic growth and increased investment by domestic investors, including pension and insurance funds.



2. One can easily see conviction in his view point as post Taj terror attack in Mumbai Sensex has recorded a 7% rise. Moreover now Sensex is valued at 9.6 times the earnings of its 30 companies as compared with a four-year average of 19.2. He is of the opinion that India as a nation is bound to see a period of great uncertainty, however great potential also exists here only. Even Mark Mobius, executive chairman at Templeton Asset Management, and Hugh Young , MD at Aberdeen Asset Management also agree with the opinion expressed by Rakesh Jhunjhunwala.

3. Aberdeen is of the opinion that investments in the Indian market will accrue returns as companies which were fully valued have come back to good valuations and thus India appears as a lucrative target for investment. Moreover he feels that annual inflation in India may drop to less than 5% in coming two months. Moreover optimism is being expressed that rupee may strengthen to between Rs 44 and Rs 45 against the dollar by March 2009. Mr Rakesh Jhunjhunwala suggests investors to invest in equities, commodities and emerging-market currencies, and declines in the dollar. Do remember to read about Rakesh Jhunjhunwala venture in commodity market.