Ahmedabad: Sounding bullish on the Indian growth story, ace investor Rakesh Jhunjhunwala today said the positive trend of stock markets in the country is good. "The trend of stock markets is good.
I don't know much about the upper levels for Nifty, but 5,500 to 5,550 mark could be base at lower levels unless any major event happens," Jhunjhunwala said in reply to a query. "Today we are seeing a bullish trend in the markets.
It's okay, but how long will it sustain nobody knows." According to Jhunjhunwala, the banking sector still has tremendous potential to unlock value.
"Still, we don't have as many bank accounts as the number of mobile phones." Speaking about his stake sell in the Delhi-based A2Z company, whose Rs 6750-crore initial public offering (IPO) opens tomorrow for subscription, he said, "In July 2006, I had picked up stake in the company for Rs 22 crore.
"The renowned investor has 1.21 crore shares in the diversified group and is off-loading 4 per cent of his shares. "I am selling 5 lakh shares only, so post-IPO my shareholding will be 1.16 crore," Jhunjhunwala said.
The company will divest 67,500 million shares and the existing investors 45,56,193 shares through the issue. "The IPO proceeds shall be used to fund projects in renewable energy, solid waste management, working capital for EPC business and for repayment of loan of Rs 40 crore," A2Z Promoter and Managing Director Amit Mittal said.
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