Rakesh Jhunjhunwala, the very known face of Dalal street, in an exclusive interview expressed his concerns about the state of the market, and slowdown seen in the economy.
Rakesh Jhunjhunwala highlighted that NBFC crisis, elections as well as fiscal situations have led to a short-term slowdown in the economy.
“Every bank is shy to lend corporates. This reluctance can be overcome by capitalizing banks & flushing the system with liquidity,” said Jhunjhunwala.
However, he is optimistic that the economy and the market will rebound, but can’t put a timeline on it.
“India is not in the ICU but we need a sense of urgency w.r.t dealing with NBFCs, and price being paid for correctness in business models is not too high,” said Jhunjhunwala.
“Constant restructuring of PSU entities has also led to pain in the economy. I don’t feel that India has a 10 percent GDP growth rate model as of now,” he added. And, it would be difficult to see double-digit growth in the next 2-3 years, added Jhunjhunwala.
He is not bearish on the market at current levels and sees 10,750-11,000 levels on the Nifty to act as a bottom for markets.
If the Indian economy has to grow beyond the 6-7 percent mark, it would require stimulus from the government, and at the same time subsidy should be stopped to public sector enterprises.
“Govt needs to act fast on the economy. The economy needs govt stimulus to grow beyond 6.5 percent. Govt should stop subsidising Air India, BSNL & MTNL,” said Jhunjhunwala.
He further added that the Govt may not want to do things in a hurry, but has no doubt that this government will do whatever it takes to push the economy to a $5 trillion mark.