Indian stocks markets have hit record highs since Narendra Modi won a landslide mandate. The stock market rally began even before that. Since Mr Modi was announced as BJP's prime ministerial candidate in mid-September, the Nifty has rallied nearly 24 per cent.
Billionaire investor Rakesh Jhunjhunwala attributed a large part of the rally to the "Modi effect". There are also other factors like "the feeling that Indian economy has bottomed out", he told NDTV. (Watch Video)
Mr Jhunjhunwala, who is also hailed as "India's Warren Buffett", expects the rally in Indian stock markets that started in August when Nifty was at 5,500 "to be the beginning of the mother of all bull runs that India has seen". It could last for 10-20 years markets, he says. Nifty ended 11 points higher at 7,275.50 on Tuesday.
"We are underestimating the kind of change Mr Modi will bring into this country and the effect of that change on equity markets," he says.
Mr Jhunjhunwala says the biggest factor for the bull run is the hope that "Mr Modi will enable policies that will accentuate growth and increase optimism".
Mr Jhunjhunwala however wanted to keep investors' expectations tempered. "Let us not be in a hurry. The government can't be like the stock market. We need good governance and righteous economic policies."