Nifty won't dip below 16,500, realty upcycle starting, says Rakesh Jhunjhunwala

Big bull, Rakesh Jhunjhunwala, of Rare Enterprises believes that the market won’t correct more than 10 percent of its value. In an interview to CNBC-TV18’s Sonia Shenoy and Prashant Nair, Jhunjhunwala said he does not expect Nifty to go below 16,500. He added that India is in the early stage of a long upcycle in real estate.

“Today, the index has made a top at around 18,600. I don’t think the index is going to go below 16,500-16,800. In my opinion, it won’t correct more than 10 percent of its value.”

“We are at the early stage of a long upcycle in real estate. However, this time the increase in speculative prices will not be so fast, it will be steady. The speculative part will come when people buy houses and offices for investment rather than for usage. At this moment, you have demand from only actual users. Also, one big factor is reduction in interest rates; and so, it has become very affordable now.”