Despite minor corrections in the stock market, investors should not be swayed by it.
While the stock market is undergoing a correction, Rakesh Jhunjhunwala is expecting the rally to continue. It was his advice not to let minor changes in the equity market sway investors. Likewise, Jhunjhunwala said inflation was temporary, and increased economic costs would not impact that market rallies.
In an interview with CNBC-TV18, Jhunjhunwala said investors shouldn’t be scared of the market as a whole just because of a few minor corrections.
Last week, Nifty50 spiked above 15,900, and now it is down 2%.
According to Jhunjhunwala, the current bull market will last longer than the rally from 2004-2008.
In response to the threat of a third wave of COVID-19, Jhunjhunwala said he does not believe there will be the third wave.
The second wave wasn’t predicted, and now there is talk about a third wave. Since vaccination programs are picking up and immunity is growing, I don’t think there will be the third wave. Plus, the economy is better prepared now.
According to the market vet, bull markets would not be linear, and corrections would need to occur during bull markets.
He said that bull markets cannot be linear and that there may be a fall in the market after the recent surge in mid and small-cap stocks.
The stock market wizard is bullish on India’s economy and believes the recent reforms will be beneficial in the long run.
There is a good chance that the Indian economy will grow for a long time. “The structural change that is happening in the Indian economy is coming to the fore,” said Jhunjhunwala.