Ace investor Rakesh Jhunjhunwala remained bullish on Indian stock markets, expecting Sensex to retest unchartered territory in the run-up to Diwali. He believes that Indian market has recovered from COVID-19 crisis on the back of sustained fund inflows from foreign institutional investors and fast-paced government reforms despite subdued corporate earnings and macro economic data.
Foreign institutional investors, which have remained net buyers in the equity market since April, would help India achieve its target of double-digit growth in the next five years, Rakesh Jhunjhunwala, partner at RARE Enterprises, told CNBC-TV18.
Jhunjhunwala also remained bullish on the economic growth prospects, saying that the government is doing extremely well on reforms front which is likely to bring tsunami of capital flowing into the stock market. He said that the pace of government reforms has picked up now as compared to in June, as per the report.
"I am 80 percent less frustrated today than I was in June," he said.
"Was earlier frustrated by the slow pace of reforms. Now the pace of reforms is picking up," he added.
"It is not easy to do reforms in India. The government is hell-bent to carry out reforms despite political opposition. I am extremely happy with the kind of reforms done by the government," Jhunjhunwala said.
On government's stake sale in PSU units, the ace investor said that the process will start soon.
Indian stock markets already touched new high today on the back of strong global cues, with Sensex rising over 600 points to 42,534 while Nifty climbed to 12,445, breaching their January highs. The US presidential election results, corporate earnings numbers as well as movement of the rupee and crude oil prices are likely to drive the stock markets this week. The BSE and NSE will conduct a special one-hour Diwali muhurat trading on Saturday (November 14), starting 6:15 pm. The special trading session marks the beginning of a new Samvat - the Hindu calendar year that starts on Diwali - and it is believed that Muhurat Trading brings prosperity and wealth throughout the year.