I don't think low-hanging fruits have been plucked yet: Rakesh Jhunjhunwala

With the Sensex at 18,000, Rakesh Jhunjhunwala is unhesitatingly bullish. Whether it’s macroeconomic indicators, the monsoon forecast, corporate earnings or even consumer behaviour, he’s calling them all as signs of a continued upward movement. “There is tremendous opportunity and I don’t think the low-hanging fruits have been picked yet. We see new good stories coming out every year,” he told ET NOW’s Nikunj Dalmia in a one-of-a-kind interview.

He scoffs at any suggestion that Indian equities are overpriced: “Whenever outperformance starts, there is always doubt. Everyone will downgrade India, say India is expensive, but when people see the markets are not going down and earnings are going up, everybody joins the party.” With earnings set to grow — he predicts a rate of 15-20% a year — P/E ratios are only going to go up, Mr Jhunjhunwala feels.

So is India’s biggest bull putting his money where his mouth is? Absolutely — he may be fully invested, but “If I like the ideas, I can always fund them. I can sell something, I can borrow, there are so many things I can do.”

Where might those ideas be? Mr Jhunjhunwala is bullish on consumer goods, agri and retail sectors — he pointed out that rural and consumer sectors are booming, and singled out two stocks he owns as good bets: VIP Industries and Rallis.

And, of course, he reiterated his super-bullish stance on Titan Industries. “I personally feel that Titan can be an international watch brand. They have free cash flows, they can replicate worldwide or in emerging markets what they have done here. I have a lot of respect for the management, for the ethics, for their skills.”

What would he stay away from? “I don’t like PSU banks. I trade them, but don’t make long-term investments in them,” he cautioned.