The Big Bull of Indian markets- Rakesh Jhunjhunwala

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More than 2 months ago, Rakesh Jhunjhunwala, a veteran of the Indian stock market and the “Warren Buffet of India,” passed away on August 14, 2022. The whole of India and its markets mourned at this news. FIC Ramjas take a deep dive at the life and stellar career of the veteran big bull who shaped India’s stock markets.

Who was Rakesh Jhunjhunwala?

Indian business tycoon Rakesh Jhunjhunwala (5 July 1960 – 14 August 2022) was a billionaire trader and investor. He began investing in 1985 with a capital of ₹5,000, and his first significant profit came in 1986. His estimated net worth was $5.8 billion at the time of his death, making him the 438th-richest person in the world. He was a partner in his own asset management business, Rare Enterprises. In addition to being an active investor, he served as a director and chairperson for several companies. He was also the founder of Akasa Air. He was under investigation for insider trading, and in 2021, he settled with SEBI. Jhunjhunwala was renowned for his stock market forecasts and upbeat outlooks and was frequently referred to as “India’s Warren Buffett” or the “Big Bull of India.”

When it comes to making investments in India, the multibillionaire investor was one of the most outspoken. In his most recent interview with CNBC TV18, Rakesh Jhunjhunwala repeated his bullish views on the domestic equity markets. He had, however, forewarned investors that index growth would be slower than in recent years

Holdings and Effect:

Among the several businesses controlled by Rakesh Jhunjhunwala, Titan Company Limited of the Tata Group was frequently mentioned as his favourite stock. Titan’s stock is the greatest asset under Rakesh Jhunjhunwala’s ownership in terms of value. In addition, Big Bull owns Geojit Financial Services, Tata Motors, Indian Hotels, and his recently floated firm, Star Health and Allied Insurance. Rakesh Jhunjhunwala made his debut in the aviation sector this month when Akasa Air flew for the first time.

“His portfolio consists of companies which have risen from being value investments to larger players,” said Kranthi Bathini, a strategist at WealthMills Securities Pvt. Jhunjhunwala wasn’t much involved in the management of companies in which he owned strategic stakes, Bathini said, adding that “these stocks are unlikely to see any major impact since his investments will be looked after by his company.”

Jhunjhunwala had a devoted following among the nation’s expanding horde of individual investors and was one of the most critical market voices in Asia’s third-largest economy. He had a cult-like following as a result of his successful investment, and occasionally, news of his trades caused stocks to surge above their daily limitations.

Key HoldingsValue
Titan$1.4 billion
Star Health$884 million
Metro Brands$281 million
Tata Motors (shares, DVRs)$262 million
Crisil$164 million
Fortis Healthcare$113 million

Source: Bloomberg

The market resumed trading on August 16th following a holiday, with varied results for the shares of the companies in which Jhunjhunwala owned holdings. While Aptech dropped more than 5%, Titan increased by roughly 1% and Star Health by as much as 2.5%.

According to the daily Economic Times, which cited an unnamed source familiar with the situation, Jhunjhunwala’s wife and three children will receive his estate, which includes shares and property. The story claims that the millionaire had already developed the idea.

Big Bull’s view on India’s stock market

Rakesh Jhunjhunwala is still optimistic about domestic stock markets despite the challenges Dalal Street and its international colleagues are facing. According to Rakesh Jhunjhunwala, “I believe the (local) stock markets will increase regardless of global circumstances.” Although he continues to support Indian markets, he claimed that Dalal Street will develop at a somewhat slower rate. With his latest venture, Akasa Air, the big bull has solidified his status as a supporter of India’s growth narrative.

PSU banks are Rakesh Jhunjhunwala’s bet when it comes to industries that he thinks will prosper in the future. I’m bullish on PSU Bank, PSU Bank, and PSU Banks, he declared. Jhunjhunwala explained his thinking behind the same, stating that he believes credit will expand, which will have the effect of increasing banks’ pricing power. He continued, “PSU banks have considerable power to gather deposits.”

Rakesh Jhunjhunwala has Canara Bank stock in his portfolio, which is valued at about Rs 800 crore or 2%. Federal Bank, a private sector lender, and Karur Vysya Bank are further financial institutions in the portfolio of the huge bull.

Rakesh Jhunjhunwala added that he is also optimistic about the hospital industry. “Health is a very significant factor, and if health insurance costs increase, hospital utilisation will increase and running hospitals will become more challenging. I’m a big proponent of hospital space, he continued. At the end of June 2022, the large bull owned a 4.2% investment in Fortis Healthcare and promoted Star Health and Allied Insurance Company.

Rakesh Jhunjhunwala was India’s sincere supporter; he consistently held faith in the country’s potential. Numerous prominent figures, including Shri Narendra Modi, Sir Ratan Tata, and many more, expressed their sympathies for the Big Bull’s unfortunate and premature passing.

However, the Big Bull narrative will always serve as an example for Indian youth, and markets will undoubtedly implement his opinions.

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