Indian economy has been through a lot, from emergency of 1975 to demonetization of 2016. Each time it has shown that it can make miraculous recoveries.
Covid-19 has tried to test the strength of the Indian Economy again. Although experts predict that India is going to witness a V-shaped recovery, the long term damage done by this pandemic will be seen for a long time.
Despite this, Rakesh Jhunjhunwala, also known as the Warren Buffet of India is very bullish on Indian Markets. According to him, the golden period of the Indian economy has just begun.
Table of Contents
Rakesh Jhunjhunwala is a billionaire investor who has been into investing for more than 36 years. He has been one of the most successful investors India has seen. He is also referred to as Warren Buffett of India. To put things in perspective, he has multiplied his money 63 times in the last 15 years.
In 2002, his net worth was just 250 crores. And right now, according to Bloomberg Billionaires, his net worth is more than 50000 crores.
On February 24th 2021, He said that India will overtake China in next 25 years. To read more click here
On February 23rd 2021, He said that Nifty will be in the range of 90k to 100k by 2030. To read more, click here
On March 25th 2021, He said that not just the decade, but the entire century belongs to India. To read the article, click here
On April 21st 2021, He said that Indian Economy will grow in double digits for next 5 years, To read the article, click here
On May 24th 2021, He said that PM Modi has handled the economy very well in Covid and gave him a rating of 9 out of 10, To read the article click here
On June 21st 2021, He again reiterated his long term trust in India. To read the article click here
And on June 22nd 2021, He said he was bullish on bank stocks and says even “inefficient” lenders are going to boom in the next decade. To read the article click here.
These are the statements he has given regarding Indian market in the last 4 to 5 months. He is projecting a very positive attitude towards Indian market and recovery.
The question arises, the man who used to say that he cannot predict what is gonna happen next week has suddenly formulated the whole road map of Indian market for this whole decade?
In October 2019, He said that you can never predict how a market is going to react or where the market is gonna go. The video is here:
This is not the only instance he has said it, there are many instances in the past where he has reiterated one thing, “no one can predict the future”.
So, what could be the possible reason for a man to suddenly change his stand?
The reason is bungling of Indian Economy by the current government.
He is invested in the market and has realized the aftermath of Covid. It has created a big hole in the economy which may consume most of these investors. So, they are trying to create a fake demand in the market so that the prices do not go down.
Market manipulation is influencing the price of a commodity for personal gain.
No, market manipulation is not at all legal. It has been explicitly prohibited by SEBI, the stock market regulatory authority. So, Rakesh Jhunjhunwala’s actions are borderline legal at best.
Harshad Mehta too was booked for market manipulation, also known as the SCAM 1992 story.
There have been instances in the past where pump and dump of stocks have taken place due to Rakesh Jhunjhunwala. He has been investigated multiple times by SEBI for violation. Although they couldn’t prove anything.
SEBI serves notice to Rakesh Jhunjhunwala over alleged ‘insider trading’ charges – incident of 16th June, 2020
SEBI drops charges against Rakesh Jhunjhunwala and company – incident of August 9th, 2006
It is clearly evident that Rakesh Jhunjhunwala is trying to create a fake image of Indian economy for his personal gains. His trading pattern has also changed recently. In 2010 era, he used to invest for time frame of 3 to 4 years, in recent years he has changed to 3 to 4 months time frame, which makes it easy for him gain in short term.
Either there is going to be some miracle and India will show a double digit growth for the next decade or this is all a “jumla” and fake demand is being create, in which case SEBI should come into action and see if any of its guidelines were violated.
A Memorandum of Understanding (MoU) is an agreement between two or more parties who enter…
A non-cognizable report is more popularly known as NCR. The non-cognizable offences under Section 2(l)…
Summon and warrant, are the two terms which are often used interchangeably by many people.…
It is a general misinterpretation by many law students, as admission and confession are used…
Introduction The law of Adultery as it remains in India rebuffs and punishes just the…
No, generally most of the aftermarket exhausts are illegal and will land you in trouble…