How Rakesh Jhunjhunwala Made 20x Returns After the 1989 Budget
· Business · Economic Times, Times of India
In 1989, legendary investor Rakesh Jhunjhunwala turned a Rs 1 crore investment into Rs 20 crore overnight by betting against widespread panic on Dalal Street. Ahead of the first Union Budget under VP Singh's newly formed government and Finance Minister Madhu Dandavate, investors anticipated an aggressively anti-business socialist agenda and offloaded shares. At just 29 years old, Jhunjhunwala reasoned that VP Singh was a pragmatist who would pursue growth, having previously lowered tax rates during his tenure as Finance Minister. He went all-in on heavily discounted shares, most notably iron-ore exporter Sesa Goa, leveraging his net worth to the hilt. When the budget was presented in Parliament, it proved rational and pro-growth, triggering a massive market rally that vindicated his contrarian bet.
Why it matters
The trade established Rakesh Jhunjhunwala's reputation as the Big Bull of Dalal Street and remains a defining example of contrarian investing in Indian stock market history.
Read the original report — Economic Times
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