Rakesh Jhunjhunwala's Birth Anniversary: A Look At India's Warren Buffett's Market Expertise

July 5 marks the birth anniversary of late Rakesh Jhunjhunwala, a heavy weight in India's financial landscape who passed away in 2022 at the age of 62. The Indian billionaire investor, stock trader, and chartered accountant ruled the markets for decades like a big bull and was often referred to as 'Warren Buffett of India'.

Jhunjhunwala's predictions about the Indian markets were both bold and insightful—he foresaw Covid-19 was a mere diversion in what will be a long-long bull run in the market. This foresight has proven remarkably accurate as the Nifty has soared to over 24,000 from its pandemic low of 7,511 in March 2020. Similarly, Sensex has surged to over 80,000 from around 26,000 four years ago.

Even in his absence, the strategies and investments pioneered by Jhunjhunwala continue to bear fruit. His wife, Rekha Rakesh Jhunjhunwala's portfolio showcases substantial growth across various sectors, exemplifying the enduring legacy of his investment acumen.

Starting his journey in 1985 with Rs 5,000, Jhunjhunwala, the son of an income tax officer, ventured into the stock market when Sensex was at 150. His initial big break came in 1986 when he purchased 5,000 shares of Tata Tea Ltd.—which was renamed Tata Global Beverages Ltd. and then Tata Consumer Products Ltd.—at Rs 43 apiece. Within three months, the stock soared to Rs 143 per share, which helped him pocket a profit exceeding three times his investment. This early success marked a pivotal moment in his career, setting the stage for his subsequent achievements in the financial markets.

Jhunjhunwala had once revealed to this publication his financial philosophy—he held a modest Rs 50,000 in fixed deposits and approximately Rs 1 crore in the Public Provident Fund, with the remainder of his investments placed steadfastly in equities.

Jhunjhunwala has also often put his weight behind India's economic growth prospects over the years. He was bullish on India achieving 10% growth rate by 2024-25. And while the economy has not realised this—amid global uncertainties—it has seen robust recovery, with markets rallying on.

Fiscal 2022 saw India's real GDP grow 9.1% and 7.2% in FY23, after a pandemic induced contraction in fiscal 2021. RBI Governor Shaktikanta Das recently projected sustained growth towards 8% in FY24, highlighting the resilience and potential of the Indian economy that Jhunjhunwala fervently championed.

The billionaire was also a supporter of the Indian government's economic policies, particularly those under Prime Minister Narendra Modi. "I agree with the policies of PM Modi. I want him to return. His policies are decisive and correct," he had stated in a 2019 post-election interview.

Foreign Direct Investment inflows doubled over the decade, reaching a record high of $85 billion in FY22. This was a testament to the growing global confidence in India's economic policies and potential, a sentiment that Jhunjhunwala shared and championed.

His foresight extended beyond conventional wisdom, notably predicting India's pharmaceutical sector's ascent as a global leader. His predictions proved prescient as the Nifty Pharma surged over 120% in the last five years, solidifying India's pivotal role in global pharmaceuticals.

Jhunjhunwala advocated for privatisation and structural reforms in public sector enterprises. His advocacy aligned with broader economic reforms, including the consolidation of public sector banks and strategic disinvestments, which have bolstered indices like the Nifty PSU Bank.

Jhunjhunwala's legacy transcends his financial acumen; it epitomises an unwavering optimism in India's economic prowess. Ahead of the 2019 Lok Sabha elections, he famously compared his affection for Indian markets and the economy to his enduring love for his wife, expressing faith across short, mid, and long-term horizons. "Like I tell my wife—I love you in short-term, mid-term, and long-term—I feel the same for Indian markets and economy," he said.