Rakesh Jhunjhunwala : Interview after FDI in Retail Announcement

Rakesh Jhunjhunwala thinks politicians are creating a ruckus over retail for no reason; he strongly believes that while agriculture and media offer interesting stock opportunities, infrastructure may not. He says he not only loves gambling but is also bullish on the casino business. Jhunjhunwala outlined his investment philosophy and discussed his portfolio in a conversation with Punita Kumar Sinha, the host of the show, 'Global Insights', on ET NOW. Edited excerpts:

You've said the two big challenges for the India growth story are inflation and reforms. So are you happy with whatever announcements have been made or do you think more needs to be done?

I am happy with the fact that some reforms have come out. I am not very hopeful that in the tenure of this government there would be many major reforms. But there is tremendous political opposition to whatever the government wants. But whether it happens now or it happens 12 months later, it has to happen. You remember when the FDI opened up in so many items, there was so much opposition. Who is talking about it now? I think that the opposition to FDI in retail is all humbug because they say you will import goods from China. Aren't Pantaloon, DMart, Trent and Titan importing? You have to make your economy competitive. Goods will be procured from where you will get the cheapest price and the best quality.

It could risk increasing India's trade deficit, which is already quite high.

But, Indian retailers are importing already...

But now the scale will change.

Who says that the Indian scale would not go up? Do you think Walmart can open 100 stores in a month or a year? It is not magic. It is like saying that when computers first came, government employees were striking saying that they would lose their jobs. So I think all these politicians are creating a humbug for no purpose and no reason.

Are you trying to capitalise on opportunities in the sectors where there have been announcements? I heard you have bought SpiceJet, infrastructure and wherever there have been announcements like digitisation.

I don't want to discuss my trades. I already have a lot of investment in the retail sector. I think the retail sector is going to be one of the fastest growing sectors in the economy.

What about aviation? You seem to have taken a position there.

I have taken some small positions there and liquidated also. I am not so bullish on the sector until oil prices come down... to previous levels of $90. I don't think FDI is really going to make a difference to their basic profitability, that will only improve once the oil prices come down. They are at maximum load factors already.

Where do you see the value right now?

• I am bullish on things related to agriculture. 
• I am very bullish on retailing. 
• I think there will be opportunity in some of the badly beaten-down infrastructure and real estate stocks. 
• There will be opportunity in media. 
• There are opportunities - but money isn't there and that is the problem.