Rakesh Jhunjhunwala Indian Warren Buffett and undisputed king of Dalal Street has recently recommended stocks and sectors for investment in 2019 during an exclusive interview with CNBC-TV18.
Rakesh Jhunjhunwala is an Indian Investor and trader. He is qualified Chartered Accountant. He manages his own portfolio as a partner in firm RARE enterprise. He has created massive a wealth of 260 Cr from the stock market.
Rakesh Jhunjhunwala Stocks and Sector Recommendation for 2019
On the Occasion of Diwali during a special interview with CNBC-TV18, Rakesh Jhunjhunwala shared his views on the market and economy. He has also recommended few sectors for investment. He could not share exact stock name for investment. However, from the stock sector recommendation and his current portfolio, we could identify few potential multibagger stocks for investment in 2019.
Here is what he shared on market and economy along with stock sector recommendation.
On the Stock Market
Jhunjhunwala said that the market has been performing well. He said, “‘we have seen a huge rally in the last few years’. He has been always bullish on the Indian stock market. Despite the crisis and recent market decline due to rupee price, oil price and IL&FS, jhunjhunwala said he do not see a reason for fear in the market. He is confident that all non-banking financial companies will repay the commercial papers.
The trade wars and increase in US interest rates are key risks to the Indian stock market. He also said that market has absorbed the foreign institutional investors (FII) selling very well. He does not see the Nifty slipping below 10,000 mark.
Jhunjhunwala does not see any credit risk in the Indian economy due to the crisis in the NBFC sector. He said as a country, the need to enhance the availability of funds is towards housing finance. For the recent fight between RBI and the government, Jhunjhunwala said RBI has rights to take a decision and the government has the right to have a consultative process with RBI.
Also Read – Rakesh Jhunjhunwala Portfolio Holdings
Rakesh Jhunjhunwala Sector Recommendation for 2019
The key sector recommendation shared by Rakesh Jhunjhunwala during interview are given below.
- Bank and NBFC sector to do well in the future.
- The Insurance sector is also flourishing and likely to do well.
- He is positive on the infrastructure sector especially after the latest (Q2FY19) result of Larsen & Toubro.
- There are opportunities in pharma stocks. Pharma sector looks attractive from 2-3 year perspective.
Rakesh Jhunjhunwala Stock Recommendation for 2019
Rakesh Jhunjhunwala has not spoken directly about any stock during the discussion. However, few sectors on which he is bullish are NBFC, banking, pharma, and insurance. The stock which he is currently holding from above sectors is given below.
DHFL (Dewan Housing Finance Corporation) is first stock from NBFC sector where jhunjhunwala is holding major stake. During recent stock crash, jhunjhunwala purchased 13.34 lakh shares of Dewan Housing finance. This clearly incidates Rakesh Jhunjhunwala is bullish on DHFL for 2019.
The second stock that is indirectly recommend by jhunjhunwala is Federal Bank. He is holding major stake in Federal Bank. This year Federal Bank has not performed well. However, next year banking sector is likely to do well as per jhunjhunwala.
Man Infra is infrastructure stock. Jhunjhunwala is holding the stock of Man Infra since past few years. As infrastructure sector is going to do well Man Infra is likely to get benefited for that. The performance of Man Infra was not good last year.
NCC (Nagarjuna Construction Company) is next infrastructure holding of Rakesh Jhunjhunwala. He is holding major stake in this company. Last year performance of this stock was not good. However, with Infrastructure sector NCC is likely to perform better in the future.
RJ is not holding any shares of L&T. However, during his conversation in Interview he categorially mentioned about financial results of L&T. This indicates he is bullish on the L&T stock.
Reference – CNBC-TV18 Interview of Rakesh Jhunjhunwala
Over to You –
What is your take on the Stock Market for the year 2019?
Do you think stock and sector recommendation of Rakesh Jhunjhunwala for year 2019 make sense?
Do share your views in the comment section given below.
(The views content and recommendations expressed in this post are of Leading Brokerage house and do not represent those of Moneyexcel.com. Please consult your financial advisor before taking any position in the stocks mentioned)