Big bull Rakesh Jhunjhunwala expects the stock market rally to continue amid the ongoing correction. The ace investor advised investors not to be swayed by small corrections in the equity market. Jhunjhunwala also said inflation in the economy was temporary and the market rally won't be affected by rise in prices in the economy.
"Investors should not be fearful of the market as a whole merely because of small corrections," Jhunjhunwala said in an interview with CNBC-TV18.
Currently, Nifty50 is down 2% after scaling a high above 15,900 level last week.
Comparing the ongoing and the 2004-2008 bull market, Jhunjhunwala said he has a feeling that the current rally will last for decades.
Talking about the threat of coronavirus on market, Jhunjhunwala said he does not think there will be a third wave of COVID-19.
"Nobody predicted the second wave and now everyone is talking about the third wave. With vaccination exercise picking pace and immunity growing, I don't think there is going to be the third wave. Plus, the economy is better-prepared now," he said.
Commenting on the recent surge in mid caps and small cap stocks, the market veteran said bull markets cannot be linear and there have to be corrections.
Talking about the recent surge in mid and small-cap stocks and possibilities of correction in the segment, he said bull markets cannot be linear, there are possibilities of a fall in the market.
The stock market wizard is bullish on the Indian economy and believes the recent reforms will have a long-term positive impact on the economy.
"The economy is at a take-off stage. We went through an NPA cycle and we went through a lot of changes such as Jan-Dhan, IBC, RERA, reforms in mining, labour and farm laws. Indian is on a threshold of good and long economic growth. The structural change that is happening in the Indian economy is coming to the fore," said Jhunjhunwala.
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