Shares of Rakesh Jhujhunwala and his wife Rekha Jhunjhunwala-owned companies traded mixed on the BSE on Tuesday in an otherwise a firm market.
Rakesh Jhunjhunwala, one of India’s richest stock market investors, died at the age of 62 on Sunday in Mumbai, following a cardiac arrest.
Among his holdings, the market price of Aptech slipped 6% intra-day, but ended flat on the BSE. Others like Star Health and Allied Insurance Company added around half a per cent, while Wockhardt lost 2%.
Titan Company, the top holding in Jhujhunwala’s portfolio, settled 0.8% higher at 2,494 rupees per share, after hitting an intra-day low of 2,434 rupees.
Rakesh Jhujhunwala and Rekha Jhunjhunwala collectively held 5.05 per cent stake in the Tata Group Company.
However, Tata Motors, Tata Motors DVR, Orient Cement and DB Realty gained in the range of 0.5% to 4% on the BSE. In comparison, the S&P BSE Sensex settled 0.6% higher.
Rakesh Jhujhunwala and his wife Rekha Jhunjhunwala held over 1 per cent stake in these companies till the end of the June quarter.
According to analysts, the impact of the development will be short-lived on these stocks.
Ambareesh Baliga, Independent Market Analyst says, short-term sentimental impact on the related stocks. Many market players knew about Rakesh’s health. RARE Enterprises is a professionally run firm. Look at the fundamentals of each company before taking the investment call, says Baliga.
AK Prabhakar of IDBI Capital, too, believes that the decision to stay with these stocks should be based purely on how each of these companies is performing fundamentally.
“The stocks can see a knee-jerk reaction and can bounce back. Investors will be better off basing their decision on the fundamentals of these companies rather than getting carried away,” says AK Prabhakar, Head of Research, IDBI Capital.
On Wednesday, the markets will await minutes of the US Federal Reserve’s minutes of the July meeting. Besides, the Euro zone’s Q2 GDP data will also be released today. Back home, stock-specific action will continue to guide investors.
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