Stock markets in the country will remain bullish in the long run but with intermittent downtrends as they are facing now, according to equity investor Rakesh Jhunjhunwala."I strongly believe that India's economic growth is based on structural factors and not on cyclical factors. I see no reason why the stock markets cannot remain bullish," Jhunjhunwala said at "Sensational Sensex-Retrospect and Prospect," as part of the Thought Leader Lecture Series, organised by CII, Hyderabad Chapter here.
Jhunjhunwala said his predictions were based on factors like strong economic growth, superb corporate performance, huge under-exposure to equities, growth in financial savings and tectonic shift of investments from the western world to emerging markets like India.
The only problem is to predict how frequently and for how long would markets experience bearish trends, he added.
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Terming the Sensex as "sensational", for the kind of returns it has offered investors over the last 29 years, he said no other investments on any sector would have given about 18 per cent compound return on investments per annum for the last three decades as the Indian stock markets have.
He pointed out that India enjoys certain growth enablers such as its culture of tolerance, educational base, skilled individuals, economic factors like a well-developed entrepreneurial class, vast natural resources, strong resilience, strong democratic foundations, secular fabric, young population and finally its nuclear power.
All these would definiely catapult the sensex in the coming years, he added.
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