Mumbai: Rakesh Jhunjhunwala, ranked a billionaire by ‘Forbes’ magazine last year for his holdings of Indian stocks, says investors should avoid the markets after nationwide elections until a new government is formed.
The country went to the polls on Thursday in a five-stage election across the world’s biggest democracy. Counting begins on 16 May.
The Bombay Stock Exchange’s Sensex index had plunged 11% on 17 May 2004, the most in at least a decade, as investors feared a government formed by Sonia Gandhi’s Congress party and its Communist allies would slow the pace of reforms.
“My advice is to stay away from the markets between 16 May and 30 May as there will be volatility in the markets post-elections,” Jhunjhunwala, 48, said in an interview.
Jet shares fall on report of restructuring
New Delhi: Shares of Mumbai-based Jet Airways (India) Ltd fell 10.71% on Thursday to Rs197.65, ending a rally that began this week, after TV channel NDTV Profit reported that the airline may shut some ticket sales and back-end services offices in major Indian metropolitan cities. The channel did not say where it got its information from. About 400 jobs, the channel said, could be affected at the carrier because of such a step.
Without any details, the airline said in an emailed statement that it was “taking a proactive approach to improve viability” and it wouldn’t comment on restructuring initiatives.
- Bloomberg & Staff Writer