Since the announcement of ace investor Rakesh Jhunjhunwala has picked up the stakes in these two Public Sector Undertaking (PSU) stocks — Canara Bank and National Aluminium Company (NALCO) — have been surging to 13 per cent on the exchanges. 

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Rakesh Jhunjhunwala has made a fresh entry in NALCO, a mining, metal, and power company, and in state-run Canara Bank. He bought 2,50,00,000 equity shares, aggregated 1.36 per cent stake and 2,90,97,40 shares, comprising 1.6 per cent stake in the latter. 

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NALCO released the September shareholding pattern on 12th October 2021, while Canara Bank came out with the Q2 shareholding pattern on 7th October 2021.  

The shares of NALCO have jumped around 13 per cent and Canara Bank has gained 11.5 per share since the companies revealed their shareholding pattern and Rakesh Jhunjhunwala’s name appeared in the holding pattern. The NALCO shares hit a new 52-week high for the last two straight sessions.   

The market analyst and ChoiceBroking Executive Director Sumeet Bagadia adviced to hold NALCO shares as the counter has started sustaining over Rs 100 per share level, lately and believe 20-25 per cent upside move is likely going forward.   

He added that the market would soon witness upside of Rs 115-125 per share level soon in the scrip with a support of Rs 90-91 per share support at the downside level.  

The Nalco shares in the last six months has outperformed the market to gain over 86 per cent, compared to a 26 per cent rise in the S&P BSE Sensex during the same period. 

On Thursday, NALCO closed over 2 per cent to Rs 107.55 per share, while Canara Bank surged near 4 per cent to Rs 193.55 per share on the BSE, as compared to 0.94 per cent in the BSE Sensex. 

Rakesh Jhunjhunwala, who is also termed as the Big Bull of the Indian share market, along with his wife Rekha and associates publicly holds around 40 stocks in finance to tech and retail to pharma sectors and also manage asset firm Rare Enterprises.