In the last month Jhunjhunwala's key holdings have eroded in value. They include Bharat Earth Movers (Rs 85 crore), CRISIL (Rs 40 crore), Lupin (Rs 70 crore), Nagarjuna Construction (Rs 100 crore) and Titan (Rs 90 crore) - have all dim.
| RAKESH JHUNJHUNWALA'S HOLDINGS | |||
| Company Name (Rs in cr) |
Current |
Peak |
Chg |
| Nag. Const |
177.10 |
275.70 |
(98.64) |
| Titan Inds | 188.10 | 270.50 | (82.37) |
| Lupin | 148.70 | 210.80 | (62.13) |
| BEML | 114.60 | 198.30 | (83.72) |
| Punj Lloyd | 75.90 | 119.70 | (43.77) |
| Praj Inds. | 71.60 | 107.10 | (35.54) |
| CRISIL | 67.40 | 105.10 | (37.68) |
Despite the erosion in wealth, Jhunjhunwala believes the secular and structural bull market is very much alive and kicking. "Although factors known or unknown may slow it, it will need God's wrath for it to be reversed prematurely," he is believed to have said.
Jhunjhunwala made a presentation at a equity seminar. He said he stood by what he felt were the key drivers of the bull market. He said India's economic growth, superlative corporate performance, vast under-exposure to equities in India and the tectonic shift of imperatives to invest in emerging markets were prime drivers behind the Indian bull markets.
After an unprecedented rise in the BSE Sensex from 6000 to 12600 in 12 months, and excesses becoming apparent; it was logical that the exuberance be corrected, Jhunjhunwala said.
Sensex Rise and Fall: Complete Coverage
Jhunjhunwala predicted that in the absence of earnings damage, Sensex would trade with the 9250-9750 range acting as a strong support, "Markets are not going to make a new high in a hurry. There is risk to market recovery as there is a risk to earnings growth of India Inc. The rising input cost, slowdown and interest rate are the major hurdles to earnings growth hence forward," the stockbroker said.
Expanding on the external factors he said, politics in India, risks to valuation and sentiment, global asset allocation shift, global and domestic liquidity, growth perceptions, currency and current account deficit are currently impeding factors for bull markets. "However all these risks can only temporarily impact, and not reverse, the basic direction of earnings, valuation and sentiment," he said.
He closed off with a warning. "Despite all-round optimism and unprecedented gains, never forget the 4-letter word associated with equities RISK. As a trader, react to Price. As an investor, react to fundamentals. Don't always react to the apparent, or with the herd. Investing success is not a one way street. It is not about buying the optimism and selling the pessimism. Superior Investment returns are not gained without pain, time, introspection and doubt," he said.
And the last word. "Expect realistic returns, this is not a Casino. Be greedy, but be long-term greedy. Despite all-round pessimism, never forget the opportunity in equities."
© 2024 Rediff.com -