Rakesh Jhunjhunwala Top Picks: Veteran investor Rakesh Jhunjhunwala believes that PSU bank shares may see a good rally in the coming days. Apart from PSU bank, he is also bullish on commodity cycles. State Bank of India (SBI) shares in public sector banks are their first choice. Rakesh Jhunjhunwala said these things during an interview with Moneycontrol. He says that he is also very positive about the Indian market and is investing.
What to say on government banks
Rakesh Jhunjhunwala, called Warren Buffet of India, said that the asset quality of state-owned banks is improving. They have taken adequate measures to deal with non-performing assets. In the future, good deposits can be seen in public sector banks. They also have the full capacity to do so.
Rakesh Jhunjhunwala has invested in SBI and Canara Bank. Putting bets on credit growth opportunities, he says that I believe the credit growth to GDP ratio in traditionally India is 1.25 -1.50. Credit growth, which is currently visible at 6-7 per cent, may soon go up to 15 per cent.
Why is SBI the top pick?
Rakesh Jhunjhunwala said that SBI is his top pick in PSU banks. Its management is better. The ability to lend is strong. If someone needs a loan of Rs 5000 crore, then he will turn to SBI only. The retail business of the bank is also strong and its subsidiaries are also doing very well. No company or bank in India can compete with the distribution of retail and mutual funds of SBI.
Also positive on commodity stocks
Rakesh Jhunjhunwala says that possibilities are also visible in commodity stocks. His investments include Tata Steel and JSW Steel. They believe that the commodity cycle will continue in the next 5 years. The valuation of commodity stocks is also attractive.
These sectors included in the choice
Rakesh Jhunjhunwala says that he has increased investment in pharma, telecom, steel and bank sectors. Has invested in Tata Steel, Jindal Steel, Sun Pharma Research Company, Canara Bank and SBI.