India isn’t a crowded trade; it’s in fact a favoured market: Rakesh Jhunjhunwala in ET

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ET Now caught up with renowned investment guru Rakesh Jhunjhunwala, Partner, Rare Enterprises, for his outlook for the markets. Excerpts:

ET Now: Do you think that the Indian market is crowded?

Rakesh Jhunjhunwala: I do not think India is a crowded market. India is actually a favoured market. You have just to look at the ratio of institutional money that India can attract.

There are so many people who are not invested in India as yet. There are thousands of foreign investors who have not entered India so far. It is mostly only local money that is being put to work.

In a country where the potential saving is at $1 trillion, not even $5 billion comes into the market. That means merely 0.7% or 0.5% of India's household wealth is in equities. So, how can we say it is crowded? Just because the markets have gone up does not mean the trade is crowded.