Looking at the data, so far in the year 2013, individual stocks have made more money than the actual index; and the stage looks set for a bull market, he added.

According to the ace investor, there are a lot of shares that have doubled, even tripled, in December.

"So, if luck is on our side, the stage is set for some kind of a bull market," he says.

For the year 2014, Jhunjhunwala is of the view that a lot will depend on how events pan out for the bull market to happen. The Nifty has gone nowhere from 2010 to 2013. But TCS is up eight times.

There are so many intra-differences in the Nifty. That is now spreading to midcap software, midcap pharma, he says. "I cannot say that we surely have a bull market in 2014. It will depend on how events play out, but I am optimistic," he added.

He is not surprised the way midcap stocks have fallen as compared to large-cap stocks, where valuations are still justified. Apart from that, the currency movements and the way elections play out will be important, he added.

Stating that Narendra Modi will 'do well' for the economy, Rakesh Jhunjhunwala told ET Now that if Modi becomes the Prime Minister in 2014, it will generate 'a lot of confidence'.

"One thing is sure that he (Modi) will be able to immediately bring a lot of confidence and therefore lot of investment into India," Jhunjhunwala said. "However, for him to do things and bring change will take a year or two. We will have to have patience," he added.

Market has tremendous depth and the pace at which stocks are gaining is tremendous. Jhunjhunwala gives examples of Tata Elxsi and TVS Motor, which have infact almost doubled so far in the year 2013.

Commenting on the markets, he says that markets go up not because there is a abundance of buyers, markets go up because there is lack of sellers. So there is a lack of selling.

Jhunjhunwala has been shopping aggressively in the midcap space. He has bought Escorts, Diwan Housing Finance and Firstsource.

He justifies his stock pickings based on inherent value. "I do not know what value and what quality, but if you think there is quality and the value is much lower, or there is value and the quality is very good, it applies...you have got to look at stocks which have some inherent advantage," he added.

Rakesh Jhunjhunwala is bullish on IT sector unless and until the rupee goes back to 54-55. Around 60, they (IT sector) will do very well. Around 57, they will do well. The longer-term prospects of the software industry have just started, he added.

Even though Titan Company Ltd lost nearly 20 per cent so far in the year 2013, Rakesh Jhunjhunwala is positive on the stock.
  He is of the view that Titan is undoubtedly going to be the leader of the Indian gold market. There is going to be a big shift from unorganised to organised. If after five years of stupendous growth there is one year of no growth, I am not worried, he concludes. Jhunjhunwala is very bullish on Housing Finance companies, but if we look at the way DHFL was valued and it has a niche for loans below 12.5 lakh which is the fastest growing sector and the market is at least 500 times what it is today.

The market has only 2%-3% scratch the surface and it is growing every year and they have traded at 51% discount to book.

In the auto space, Jhunjhunwala is bullish on Tata Motors because it is going to be world leader in luxury cars and if we look at the quality of the products no other product is available and they are also delivering on earnings.

However, he was disappointed on Spice Jet and says that he is still learning from his mistakes.

He is bullish on Firstsource Solutions Ltd which has rallied nearly 80 per cent so far in the year 2013, largely led by rupee which was going up against the USD. Source  http://goo.gl/fPrnUR