Playing down the recent correction in the market and the concerns around inflation, India's renowned investor Rakesh Jhunjhunwala said India's bull market will continue and the inflation in India is transitory.
"Investors should not be fearful of the market as a whole merely because of small corrections," he said in an interview with CNBC-TV18.
The Nifty50 after hitting a high above 15900 levels last week is trading around 15600 levels which translates into a fall of about 2 percent.
Drawing a parallel between the ongoing and the 2004-2008 bull market, Jhunjhunwala said he has a 2002-2003 feeling and this is not going to last for six years, but it will last for decades.
Jhunjhunwala in the interview highlighted that 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.
Talking about the recent surge in mid and small-cap stocks and if that sector is heated up, he said bull markets cannot be linear, there have to be corrections.
Jhunjhunwala 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," Jhunjhunwala explained.
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