Online food delivery company Zomato’s IPO has come and Paytm’s IPO is coming soon. However, the confidence of veteran investor Rakesh Jhunjhunwala has not been maintained on the IPO of the new-age tech company. Looking for opportunities for investment in Jhunjhunwala metal stocks and stocks of domestic banks. Speaking at the Global Partner Summit of Motilal Oswal AMC, Big Bull said that they believe in the Indian economy and domestic markets but not on the new age internet companies that may debut on Dalal Street through Zomato’s IPO. Last week, Zomato’s IPO of Rs 9375 crore was subscribed 38.25 times. So far the company has not made a profit, but investors are excited about its IPO.
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Metals and banks preferred over new age tech companies
In a conversation with Ramdev Agarwal, chairman of Motilal Oswal AMC, Jhunjhunwala said that he can get better profits than other sectors like metals and banks. Rakesh Jhunjhunwala expressed concern about valuations of new-age tech companies and not their business models. When asked about new-age tech companies around the world and their dominance on Wall Street, Jhunjhunwala said that Indian companies are yet to prove such dominance. In addition, he said that American tech companies have built up their capital over a long period of time, such as the 25 years it took for Amazon to reach this stage.
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Modi government can be formed again at the center in 2024
Rakesh Jhunjhunwala is positive about the market momentum at the moment and believes that India is structurally stronger than it was in the 90s. Big Bull has expressed hope that the market’s strength is going to last for decades. According to Jhunjhunwala, India is in a strong position in the software space and in the next four to five years its exports can reach $ 40 thousand crore (Rs 30 lakh crore). Apart from this, India is in a position to become the pharma capital of the world. There have been reforms like GST in India. According to Big Bull, India is in the best position financially at this time. Anticipating the return of the Modi government in 2024, Big Bull said that the growth of the Indian economy is going to be sustained for the next 10 years. However, he told the need to be careful about China’s aggression. He said that if China attacks Taiwan in the next 10 years, it will be the biggest geopolitical event in the world.
(Article: Kshitij Bhargava)