Covid-19 disruption has not dented the confidence of the eternal India Bull, Rakesh Jhunjhunwala, any bit.

The ace investor says India is on the doorsteps of a new bull market, thanks to a series of reforms like RERA, GST and IBC, whose benefits will start showing up in the economy now.

“The typical conditions for the birth of a bull market are here: you have a changed country, you have a deep fall in growth and everybody is perplexed by the rise of stocks,” Jhunjhunwala, often referred to as India’s own Warren Buffett, told NDTV during an interaction.

India’s benchmark equity indices have climbed more than 50 per cent from their lows hit in March 2020 despite high-frequency indicators showing a lot of pain in the broader economy. India’s June quarter GDP growth plunged to a multi-decade low at – 24 per cent.

“The market is looking into the future,” Jhunjhunwala said about the recent rapid stride in the benchmark Sensex. “The drop in interest rates is also one of the reasons for the bullishness in stocks,” he said.

The Big Bull also predicted an imminent revival in the realty sector, which has been down in the dumps ever since the Modi government announced demonetisation to cripple the cash economy.

“The real estate sector has bottomed out and is showing early signs of picking up,” he said. The BSE Realty index has jumped 35 per cent in FY21 so far, with Sobha NSE -4.73 % gaining the most at 74 per cent, followed by Godrej Properties (up 53 per cent), Indiabulls Real Estate (up 52 per cent) and Sunteck Realty (up 40 per cent). Other index components too are up in excess of 20 per cent.

Jhunjhunwala said he is bullish on infrastructure, pharmaceutical, technology and IT in equity and on gold in commodities.

“There is a digital revolution going on around the world and India is in better placed to tap the opportunity,” he said.

Asked what are the next big reforms India should be looking at, Jhunjhunwala said there is a need to improve ease of doing business though land and labour reforms. He also advocated selling of public sector enterprises.

The ace investor said India’s GST collections should grow at 2-3 per cent annually. “It will take some time. In other nations, it took six years for GST to stabilise,” he said.