This NBFC stock just made Rakesh Jhunjhunwala richer today; this is what ace investor gained?
Not every investor has lost his or her money in the benchmark indices Sensex and Nifty 50 as they were on hotbed ahead of RBI monetary policy announcement.
Not every investor has lost his or her money in the benchmark indices Sensex and Nifty 50 as they were on hotbed ahead of RBI monetary policy announcement. The one investor who has definitely gained is something that is not going to be a surprise - the big bull of Dalal Street, Rakesh Jhunjhunwala has gained a big amount today.
While Sensex and Nifty bled by over 250 points or 80 points, it was Jhunjhunwala who gained some money as one of its midcap stocks turned out to be top performer. This stock is NBFC major Edelweiss Financial Services. At around 1325 hours, Edelweiss was trading at Rs 193.80, above by Rs 7.10 or 3.80%. However, so far its gain is nearly 5%, as the company even touched an intraday high of Rs 196 per piece.
If you had invested in Edelweiss just like Jhunjhunwala, then today you would have gained hefty as well. There is not much reason to why this NBFC company has jumped to such an extreme level. However, many experts are believing that RBI may announce few measures or views on NBFC liquidity issues.
Among NBFCs and HFCs, it seems like Edelweiss is best pick of investors.
As another HFC provider Dewan Housing Finance Corp (DHFL) who is also Jhunjhunwala's favorite stock, has tumbled by nearly 5% by touching an intraday low of Rs 211 per piece. It needs to be noted that, Jhunjhunwala has always been optimistic on NBFC stocks.
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Talking in an interview, Jhunjhunwala earlier said that the market has been performing well. He said, "'we have seen a huge rally in the last few years'. Jhunjhunwala added that he has always been very bullish on India even though oil and rupee have been the biggest factors for the recent market decline. When asked about the NBFC crisis, Jhunjhunwala shrugged off the tension, saying, he does not see a reason for fear in the market.
In fact, Jhunjhunwala is very confident about NBFC firms and said they will repay the commercial papers. Jhunjhunwala showed full faith in NBFC and also believes that, it will not tumble below the level the sector had seen earlier. He also mentioned that housing finance sector is the need of the hour for economic growth.
Currently, Jhunjhunwala holds about 1.07% stake in Edelweiss with 10,000,000 equity shares worth Rs 187.1 crore. On the other hand, the ace investor has 3.19% stake in Dewan with 10,000,000 shares worth Rs 224.2 crore. In last one month, Edelweiss has given nearly 12% return to Jhunjhunwala, even as Dewan has given just 1.55%.