Will still bet on BJP for 2019: Rakesh Jhunjhunwala on state poll results

Indian billionaire investor and trader Rakesh Jhunjhunwala on Thursday said while everyone is looking at the Assembly election results as a major setback for the ruling BJP , the outcome was actually good for the saffron party."Remember, the BJP had 15 years of incumbency in Rajasthan and MP . It still managed to capture a large vote share," he pointed out.The Big Bull said it would be difficult to predict the outcome of the general elections in 2019, but he would still bet his money on BJP’s return to power in 2019. “India is a responsible democracy, and markets are above individual parties and personalities. But I am a BJP supporter and will remain one. The sky is not going to fall if the BJP does not win. But market has a desire that the BJP returns to power,” he told the India Economy Conclave, 2018, in Mumbai.The celebrity investor said India’s economy is on an upward trajectory and most macros are historically at good levels, which will drive the market much higher in months ahead.“Capital investment is reviving and consumption demand is good. Reduction in oil prices has made Indian macros look good. The IL&FS issue is likely to be the peak of the banking crisis and recognition of most bad asset in banking sectors appears to have been done. We have problem of plenty of food now. Plus, there is a huge volume of local money waiting to come into the market,” he said.He said GST will spell huge benefits for the economy. “But everyone is talking about problems with GST, not the benefits,” Jhunjhunwala added.Often referred to as Dalal Street’s Warren Buffett, Jhunjhunwala said monthly SIP flow is likely to rise in India and he doesn’t expect it to come down. “The SIP investor is not coming to make equity returns, he is comparing it with other products like PPF and insurance. He will be very happy if he gets a 15 per cent kind of return,” he said.At the same time, he said market volatility is here to stay. “Worldwide volatility has ruled the roost and nervousness and uncertainty have triggered this volatility in the market,” he stressed.The Big Bull said excitement about midcaps has mellowed down in the market. “Midcaps can’t trade at the valuation of largecaps,” he said.He said 98 per cent of money in Indian stock market is being made by being bulls. However, he said he has not always made money by being bullish.In his trademark humorous style, the Big Bull said: “If you have a wife and a mistress and if you can manage both well, you can manage trade and investment both well. I made a lot of money by short selling, especially in 1992.”