Home » Investment » Predictability of Policies Required to Attract Foreign Investment, Says Veteran Market Investor Rakesh Jhunjhunwala

Predictability of Policies Required to Attract Foreign Investment, Says Veteran Market Investor Rakesh Jhunjhunwala

Image result for Predictability of Policies Required to Attract Foreign Investment, Says Veteran Market Investor Rakesh JhunjhunwalaNew Delhi: Ace stock market investor Rakesh Jhunjhunwala, in an exclusive interview to CNBC-TV18, said in order to attract foreign investment, a necessity to realise the $5 trillion economy dream, the government needs to stabilise its policies.

“Trade war will impact India positively. There is no problem with respect to inflation, currency or export market. Predictability of policies is required to attract foreign investment,” said Jhunjhunwala.

He also said he was not very happy with the current state of the market.

“Markets being in the state that they are, I cannot be happy about it, but we have to accept the reality as it is. So it is okay, it’s a part of life. Life is not linear; there are good times, there are bad times. So they do come and they go,” added Jhunjhunwala.

The ongoing liquidity crisis in the non-banking financial companies and the current fiscal situation have led to a short-term slowdown, he said. “Every bank is shy to lend to corporates. This reluctance can be overcome by capitalising banks and flushing the system with liquidity,” said Jhunjhunwala.

Jhunjhunwala said the economy and the equity markets will rebound but one cannot put a time stamp on it. “The economy is going to rebound unquestionably, the industries are going to rebound, the smallcap and midcaps will still rebound but the question is when. Before we ask ourselves when it is going to rebound, is it going to rebound, we got to dig deeper into the reasons while we are in this kind of a situation,” he added.

The established market guru also predicted that the RBI will not only further reduce interest rates, but also ensure liquidity. The direct impact of this, he said, will be an improvement in credit offtake.

On India’s prospective growth story, he said, “Don’t feel that India has a 10% GDP growth rate model as of now. Problem is that inefficient policies are being politically accepted.”

However, he added a caveat, “India is an elephant; changes in this country take time.”

[“source=news18”]

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