Rakesh Jhunjhunwala turned Rs 1 crore into Rs 20 crore after 1989 Budget

Ace investor Rakesh Jhunjhunwala multiplied his net worth from Rs 1 crore to Rs 20 crore overnight after the 1989 Union Budget, the Economic Times reports. The 29-year-old went all-in on stocks, especially Sesa Goa, while Dalal Street panicked ahead of the new VP Singh government's first budget under Finance Minister Madhu Dandavate.

Jhunjhunwala bet that Singh, who had previously cut taxes and abolished estate duty, would deliver a pro-growth budget. The budget proved surprisingly rational, sparking a sharp rally. Jhunjhunwala's leveraged bets paid off exponentially, with his wealth eventually swelling to nearly Rs 50 crore in the following months.

Recalling the episode, Jhunjhunwala said he staked his life on that budget. He bought an air conditioner for his wife with the gains. Jhunjhunwala, who started with Rs 5,000, died of cardiac arrest in August 2022 at age 62.