Stating that Narendra Modi will 'do well' for the economy, Rakesh Jhunjhunwala, Partner at Rare Enterprise told ET Now that if Modi becomes the Prime Minister in 2014, it will generate 'a lot of confidence'.
"One thing is sure that he (Modi) will be able to immediately bring a lot of confidence and therefore lot of investment into India," Jhunjhunwala said. "However, for him to do things and bring change will take a year or two. We will have to have patience," he added.
Asked about the market reaction to the possibility of Modi becoming the PM, Jhunjhunwala said, "If it is expected that he will become Prime Minister, it will be priced in by the time he becomes Prime Minister."
Jhunjhunwala doesn't see regional parties performing 'very well' in the 2014 elections. "They have lost vote share in Madhya Pradesh, Rajasthan and Delhi. I feel it will be an election where the regional parties will not perform very well. I personally do not see the non-NDA, non UPA parties getting more 150 seats," he opined.
According to Jhunjhunwala, a bounce back of the US economic growth is good for India. "It means very good for India for Indian exports especially software. It does not mean that if US will grow India will not get money," he said.
Talking about his outlook for the Indian markets, Jhunjhunwala said that the indices have gained. "More than indices, individual stocks have gained. Especially in the last one month, the market is finding a lot of breadth. There are shares which have doubled and tripled in December. So, if luck is on our side, the stage is set for some kind of a bull market," he said.
Jhunjhunwala is of the opinion that India has not seen the end of CAd related problems. "You cannot artificially curb gold imports beyond a point. But I am hopeful it will happen because the rupee depreciation should by itself lead to a large growth in exports and some compression of imports," he said.
