Rakesh Jhunjhunwala thanks Raghuram Rajan, says his legacy will remain

Ace investor Rakesh Jhunjhunwala on Tuesday said Indian stock market has just entered the first leg of bull market, and that benchmark indices are refusing to correct. The owner of Rare Enterprises, however, cautioned market can come down if Federal Reserve Chair Janet Yellen hikes interest rates in US.

"We are in the midst of a bull market and I think we are in a very early stages of it because bull markets cannot end," said Jhunjhunwala in an interview to ET Now.

The big bull of India also said that we must thank outgoing Reserve Bank of India (RBI) governor Raghuram Rajan for his good work. He believes Rajan's legacy will remain as Urjit Patel has the same views as Rajan. He also said he personally agrees with Rajan's stand on monetary policy.

Meanwhile, Rajan on Monday said inflation projections are still at the upper limit of RBI's target and the policy rate can be cut only if inflation eases,.

"Inflation projections are still at the upper limits of RBI's inflation objective. With RBI needing to balance savers' desire for positive real interest rates with corporate investors' and retail borrowers' need for low nominal borrowing rates, the room to cut policy rates can emerge only if inflation is projected to fall further," Rajan wrote in the foreword to RBI Annual Report 2015-16.

Retail inflation shot up to nearly 2-year high of 6.07 per cent, while the one based on wholesale prices soared to a 23-month high of 3.55 per cent in July.