Even as the stock market remains muted on amid concerns of a slowdown, ace investor Rakesh Jhunjhunwala said that PSU stocks offer a very good buying opportunity. "The biggest beneficiary of the tax cut will be the PSUs. If the government does its disinvestment programme in a measured manner, these will gain," he said in an interview with ET Now. Taking stock of the volatile market, Jhunjhunwala said that this must be the darkest hour before dawn.
"The market always gives you an opportunity to buy before going up. It is like the weather: you may not like it, but you will have to bear it," he told the channel.
Rakesh Jhunjhunwala said that the two greatest companies created in the last 10 years are IndiGo and D-Mart. "Look at D-Mart, people can’t believe the price at which he sells goods. The enterprise set up by an SSC pass gentleman (Radhakishan Damani), my close friend," he said, adding that if the firms differentiate, great companies can be created. With respect to IndiGo, Rakesh Jhunjhunwala said that it got planes at a great discount. Taking his own example of investing, he said that patience, technology, frugality, people and governance are the five attributes that he assesses before putting in money.
Asked whether gold or equities would provide better returns in the next 5 years, Jhunjhunwala said that he would buy both the asset classes. In his assessment, gold prices can rally to $2,500-3,000 per troy ounce. In the international market, gold was trading near near $1,500 per troy ounce on Thursday. He also projected India's GDP growth to touch 9 per cent by 2022. "If India heads to become a $5 trillion economy by 2025, then household savings will have to go into equities," he added.