Ace stock market investor Rakesh Jhunjhunwala said he is not very happy with the current state of the market. “Markets being the state that they are, I cannot be happy about it, but we have to accept the reality as it is. So it is okay, its part of life. Life is not linear; there are good times, there are bad times. So they do come and they go,” said Jhunjhunwala in an exclusive interview with CNBC-TV18.

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The ongoing liquidity crisis in the non-banking financial companies and the current fiscal situation have led to a short-term slowdown, he said, adding that the constant restructuring of PSUs has also led to uncertainties.

"Every bank is shy to lend corporates. This reluctance can be overcome by capitalizing banks & flushing the system with liquidity," said Jhunjhunwala.

Jhunjhunwala said the economy and the equity markets will rebound but cannot put a time stamp on it. "The economy is going to rebound unquestionably, the industries are going to rebound, the smallcap and midcaps will still rebound but the question is when."

Jhunjhunwala said the Indian economy is unlikely to grow in double-digits. "There is no doubt that this government can do what is required to make India a $5 trillion economy," he said.

The consumption growth will come back after the government takes corrective steps, said Jhunjhunwala, adding that the investment will pick up once the demand revives.

Apart from DHFL and a couple of other NBFCs, most of the companies are able to raise money, he said.

Before we ask ourselves when it is going to rebound, is it going to rebound, we got to dig deeper into the reasons while we are in this kind of a situation,” he added.

First Published:Aug 13, 2019 1:42 PM IST