Indian equities are widely deemed by experts to be looking at a secular bull run and hence any steep correction is always touted as a buying opportunity for long-term investors.
It should not come as a surprise then, that in the last fortnight in which the Sensex has retreated more than 1100 points from its peak of 29681.77, Rakesh Jhunjhunwala — often referred to as the ‘big bull’ of Dalal Street has shopped for nearly R100 crore worth of stocks in at least five companies.
His latest stock picks – in each of which more than 10 lakh shares were bought- are spread across infrastructure, engineering to the financial services space.
While the stake purchases in Man Infraconstruction and Delta Corp were done under his name, in case of Geojit BNP Paribas, incremental purchase of 12.5 lakh shares resulted in his wife Rekha Jhunjhunwala’s total holding in the company going up to 1.95% from 1.41% at the end of December 2014. Exchange filings also showed that on February 2, 2014 Mcnally Bharat allotted 25 lakh shares to Rekha Jhunjhunwala on a preferential basis at an issue price of R100 per share.
On Wednesday, the veteran investor acquired 34.85 lakh shares of Fortis Healthcare for a total value of R41.6 crore in a block deal. The purchase, resulted into the stock spiking 20% and touching an upper circuit of R138.9.
Similar buying frenzy in both Man Infraconstruction and Delta Corp led to a jump of 20% and 10.5% respectively on the day Jhunjhunwala bought substantial equity in these companies. The shares of Geojit BNP Paribas have rallied more than 23% since January 27 as Jhunjhunwala started buying shares.