Rakesh Jhunjhunwala says he is confident in aviation sector; Bullish on PSU banks, hospitals

In a recent interview, Big Bull Rakesh Jhunjhunwala said he continues to remain bullish on domestic stock markets even as Dalal Street, along with its global peers, face multiple headwinds. “I think (domestic) stock markets will grow regardless of global developments,” Rakesh Jhunjhunwala told CNBC-TV18. He also added that the growth rate of Dalal Street will be a bit slower.

Big Bull bullish on PSU banks and hospitals

Talking about the sectors he is bullish on, Jhunjhunwala said PSU banks are his bet. “PSU Bank, PSU Bank and PSU Banks are all I’m very optimistic about,” he said. Explaining his reasoning behind the same, Jhunjhunwala said he believed credit would increase, and the consequence would be an increase in banks’ pricing power. “PSU banks have great deposit-collecting power,” he added.

Financial stocks such as Canara Bank, Federal Bank and Karur Vysya Bank are part of its portfolio.

Another sector that may well move forward is the healthcare sector, Big Bull said it was also bullish on the hospital sector. “Health is a very important element and if health insurance increases, the use of hospitals will increase and it is difficult to manage hospitals. I am very optimistic on the hospital space,” he added.

In addition to being the sponsor of Star Health and Allied Insurance Company, he also owns a 4.2% stake in Fortis Healthcare, according to data from trendlyn.com.

Telecommunications sector – Not a good bet

However, the ace investor believes that the telecommunications sector is not a very good sector in which to invest. He said, “I don’t think the telecommunications sector is a very good sector to invest in because it constantly requires investment. So, therefore, there’s no real cash flow, there’s no real cash generation,” he explained.

As Akasa Air takes flight

Jhunjhunwala, who recently entered the aviation industry, is the promoter of Akasa Air. He told CNBC-TV18 that the airline will be competitive and adhere to the principle of frugality in its operations.

Jhunjhunwala said he was very confident in the aviation sector, adding that there would be many more flights and India would see 14 crores of passengers flying to reach 40 crores in the near future. Explaining his bet on India’s aviation sector, Juhnjhunwala said India will need 2.5 times more planes than it currently has as passengers will increase from 14 crore to 40 crore over the course of the next four years, a prediction made by the Minister of Civil Aviation. “I’m very confident about the history of Indian aviation,” the market veteran joked.

Akasa Air received its air operator certificate from the Directorate General of Civil Aviation (DGCA) on July 7 and recently conducted its maiden flight which was virtually reported by Minister of Aviation Jyotiraditya Scindia.

Speaking at Sunday’s ceremony, Jhunjhunwala said “nowhere in the world has an airline been conceived and born in 12 months,” he said. “Normally, a child is born in nine months, we took 12 months. This would not have been possible without the cooperation of the Ministry of Civil Aviation.

Read it Recent news and recent news here

About admin

Check Also

WA braces for airport chaos over school holidays as union warns things could be worse than July

With the school holidays fast approaching, the aviation industry is working hard to avoid a …