Rakesh Jhunjhunwala has given bullish outlook for Indian stock market. He expects Indian stock market to test new all time high in next 1-2 years.

Rakesh Jhunjhunwala expressed his views during an interview with CNBC-TV18 that Indian companies have performed better even during the economic downturn in overseas markets. There is pressure on Indian companies to perform well and we could see earning growth of 15-17 per cent.

He is positive on banking, infrastructure companies. There were reports that Jhunjhunwala has churned his portfolio in recent times.

Indian government has pushed the reforms process after policy stalemate during the past few quarters. If the government is able to cut its budget deficit, investment climate in India can improve and give further push to growth in the country. Higher inflation, high interest rates and rising commodity prices are major concerns for India.

Anirudh Dutta, Head of Research at CLSA has given positive view about investment climate in India considering the surprising move of UPA government to go ahead with reforms. Congress has pressed during a recent rally in New Delhi that the government will work in the direction of reforms and will put the country back on high growth path.

As per Anirudh Dutta, most of Indian companies have reported earnings as per expectations and this would improve investor sentiment. Many companies are trading near their 52-week high.