Rakesh Jhunjhunwala rakes in the moolah with these stock picks in first half of 2021

Rakesh Jhunjhunwala witnessed a double-digit rise in his equity portfolio during the first six months of 2021. Data shows that at least 15 stocks in his portfolio rallied more than 50% since January this year. As a result, his value of equity investment in companies in which he holds over 1% stake climbed to Rs 19,277 crore as of June 30 from Rs 15,902 crore on December 31. With a rally of 121%, Anant Raj emerged as the top gainer in his portfolio. Shares of the company climbed to Rs 59.90 from Rs 27.05. It was followed by Tata Motors (up 85%), DB Realty (up 71%), Man InfraConstruction (up 70%) and Prozone Intu Properties (up 70%).

Views on markets

In an interaction with a business news channel, Jhunjhunwala said that the ongoing bull run in the domestic equity market will continue for a very long period. He added that India is on the threshold of a long period of economic growth and reforms like RERA, Jan Dhan, mining law, and farm law, among others will support the economy which is coming out to the fore.

Digitisation, good monsoon, the flow of money which is unimaginable, the highest capex cycle, robust saving along with rising per capita income will further aid the Indian equity market, he said

As of March 31, Jhunjhunwala held stocks of more than 35 companies in his portfolio. VA Tech Wabag, TARC Ltd, The Mandhana Retail, Prakash Pipes, Orient Cement, Fortis Healthcare, Dishman Carboten Amcis, Aptech, Bilcare and NCC stood among other firms which delivered between 50%-70% to big bull. Barring Jubilant Pharmova (down 13%), MCX (down 12%), Wockhardt (down 5%) and Escorts (down 3%), other stocks in his portfolio also gained between 4%-40%.

Broader markets

While commenting on the broader markets, Jhunjhunwala said that the bull market cannot be linear and there have to be corrections. “There may be some short-term disruptions in the Indian market but the bull run will continue,” he said.

He also believes that that the commodity super cycle has just started and it will stay here for at least 6-7 years. “I am extremely bullish on metal stocks in terms of earnings and valuation. Steel stocks are valued at 5x earnings and people still doubt in these names,” he added.

The market maven is also positive on the entire PSU pack as well as healthcare firms. He thinks that the government is very serious about divestment. “The government is determined and I am also bullish on banks and on the so-called inefficient banks whether in the public sector space. You may see the biggest upside in earnings,” he added.