The market is witnessing a strong run. According to Rakesh Jhunjhunwala, we are at a cusp of a new bull run. While he suggests strong reform measures to improve the economy, the government is definitely adopting strong measures as far as dealing with China is concerned.
The glow of recovery is taken off a little as the Indian service sector shrunk for the fourth consecutive month. June's service PMI data were disappointing at 37.8. However, the pace of contraction has improved from 14.8 in May. For PMI, any reading below 50 signifies contraction.
Latest roll on Chinese dais:
India continues to protest against the Chinese intrusion through its actions. In between the Prime Minister's surprise visit to Ladakh, the power Minister R K Singh has announced the ban on importing power equipment from China.
"We will not permit imports from China. There could be malware or trojan horse in imports from China which can damage our power systems," the minister said during the conference of state energy ministers.
The action of the power ministry has come a day after the Road and Transport minister's decision to withdraw Chinese companies from participating in the road contracts.
RJ remains as hopeful as ever:
As the market continues to move upward, words from Rakesh Jhunjhunwala give extreme comfort. In an interview to a private channel, he said, we have essentially been in the bull market since 1981. We do have falls 1999, then 2008 and maybe 2020, but they do not last for long.
In his words, the latest downfall in India started in 2018 January which has bottomed out in March 2020. Financials were the last part of the market that stood uncorrected but now correction is over even there.
The stock market is reflecting the sentiments of a healing economy. It is difficult to say how this trend will sustain but the Ace investor Rakesh Jhunhunwala remains as hopeful as ever.
He wants India to aim for double-digit growth. But, to achieve that India will have to pursue agricultural, land and labour reforms with utmost sincerity.
The banning of Chinese products is becoming a viral trend among Indian authorities. However, given the serious supply-related constraints that India faces, one can only doubt the seriousness of any such move.
Read more research at https://tejimandi.com/research