Amidst the massacre, even the big bull of Indian equity markets, Rakesh Jhunjhunwala likely saw his wealth depreciate.
The butchery that equity markets witnessed on Thursday left investors poorer by more than Rs 12 lakh crore in market capitalisation of BSE-listed firms. S&P BSE Sensex tanked 3,100 points to trade at 32,589 points while the broader NSE Nifty-50 index plunged 900 points trading below at 9,557 mark. Amidst the massacre, even the big bull of Indian equity markets, Rakesh Jhunjhunwala likely saw his wealth depreciate. The billionaire investor lost Rs 603 crore from his much-adored Titan Company Limited in just one trading session.
According to the information available on the website of Titan, Rakesh Jhunjhunwala along with his wife, Rekha Jhunjhunwala holds a 6.69 per cent stake in the company as of December 2019. With his 5.93 crore shares in Titan, Jhunjhunwala has pocketed huge profits. Back in February, when Titan posted a 12.9 per cent rise in profits, Jhunjhunwala’s investment in Titan based on the same shareholding pattern reached Rs 7,593 crore. Titan share price fell by over close to 9 per cent to trade at Rs 1,084 per share.
Equity markets around the world are witnessing a bloodbath as Coronavirus continues to clutch the world economy under its fear. Travel restrictions imposed by countries and the World Health Organisation officially declaring the Coronavirus or Covid19 as a pandemic, augmented the sell-off in equities on Thursday. “Recession fears increased after WHO declared coronavirus a pandemic which forced investors to sell off risky assets. Fresh travel bans across nations are contributing to the fears that economic impact will be much larger than earlier estimates,” said Vinod Nair, Head of Research at Geojit Financial Services.
Analysts say that Coronavirus is a shock that the markets have never seen. S Ranganathan, Head of Research at LKP Securities, said, “Our Markets witnessed frenzied selling throughout the day as almost everything was sold into with the VIX reaching alarming levels. Central Bankers and Governments globally now need to take swift action to tackle the twin menace of a recession and Covid-19″.