Market Slide Took Two Mid-Caps of RK’s Portfolio to a New Low
Oct 09, 2018 | 11:51 AM IST
Oct 09, 2018 | 11:51 AM IST
Dalal street got a breather in today's trading session with both Sensex and Nifty 50 clawing themselves into the green. Sensex and Nifty 50 took a big hit last week, some thing that can be attributed to RBI's policy where the governor Urjit Patel led MPC maintained a status quo. however, the panic reversed, and today traders had 'buy' sentiment on exchanges, with Sensex trading at 34,500.48 above 123.49 factors or 0.36%, while Nifty 50 at 10,364.70 higher by 48.25 factors or 0.47% at around 12:57 hours. Shockingly, today was no longer an excellent day for Rakesh Jhunjhunwala, as buyers have been a 'sell' call in of its his favorite midcaps. When you have invested in renowned NBFCs like Edelweiss financial services and Dewan Housing Finance limited, just like Jhunjhunwala, then you are losing hefty money today. These two stocks have in fact touched an all-time low on stock exchanges.
To start with, the S&P BSE MidCap become worst performer on the benchmark index, as it became buying and selling at 13815.54 down by 188.7 points or 1.34%. That stated, in this index, the DHFL and Edelweiss have been pinnacle losers taking big hit from investors.
DHFL taking the lead on losers list on midcap indices, turned into trading at Rs 244.50 in keeping with piece underneath Rs 29.80 or 10.86%. however, in first half of trading consultation, the corporation has hit a 52-week low of Rs 241.40 in line with piece losing via almost 12% on BSE.
Not much is called to why investors are continuing to drive the ongoing bloodbath in DHFL share price, but the company has been going through an uphill struggle to restore faith. DHFL is among those NBFCs which have taken the worst of beatings on exchanges after the sector's liquidity position concerned buyers, something that may be blamed on IL&FS crisis - the company defaulted in settling its bonds due and some other financial responsibilities.
On October 03, DHFL discovered that they have received payment of interest of Rs 2.59 crore against its Non-Convertible Debentures principal amount of Rs 9 crore.
Going ahead, Edelweiss percentage price has also been down due to lack of faith from investors in NBFC sector. The company these days turned into trading at Rs 155.65 per piece down by Rs 20.25 or 11.51%. However, just like DHFL, Edelweiss has also touched a new low of Rs 155.10 per piece which led to overall of nearly 12% on Sensex.
Last week, Edelweiss had announced that it maintained a Liquidity Cushion of ~9-10% of stability sheet in any respect factors of time. modern liquidity cushion stands at Rs 5,400 crores. in addition, medium and long time assets of finances are upwards of 68% of general balance sheet.
Edelweiss even said, Adequate Liquidity Cushion currently positions us to meet all contractual liabilities over next 6 months even without roll-overs. however, traders seem to not take care of such optimistic function of Edelweiss.
Coming to Jhunjhunwala, he owns about 2.76% in DHFL which comes to 8,665,264 equity stocks worth Rs 331.45 crore. interestingly, earlier the king of Dalal street held about 3.19% in DHFL, but he determined to shorten that protecting by 0.43% between April to June 2018 duration.
In the meantime, in percent terms Edelweiss is Jhunjhunwala's smallest investment. The Warren Buffett of India holds about 1.08% in Edelweiss which are worth Rs 192.5 crore.
Those have been not alone to look promoting stress, as a few different stocks of Jhunjhunwala also tumbled nowadays on Sensex.
Aptech was down through 5.05% at Rs 136.25 per piece, Bilcare turned into at Rs 30 per piece beneath 5.36%, DB Realty at Rs 20 per piece down 3.85%, Escorts at Rs 561.35 according to piece lower by way of 4.03%, First source solutions at Rs 54.55 in step with piece down 4.97%, Jai prakash pals at Rs 6.29 in line with piece lower by using 3.97%, man Infra construction at Rs 37.05 per piece down 1.33%, MCX at Rs 661.70 per piece down 1.54%, NCC at Rs 70.35 per piece down 1.54%, Orient Cement at Rs 88.55 according to piece down 2.15%, Prakash Industries at Rs 106.60 in line with piece down 4.86%, Prozone Intu properties at Rs 29.15 in keeping with piece down 2.51%, VIP Industries at Rs 399.30 per piece down 2.43% and lastly The Mandhana Retail at Rs 40 per piece decrease by 1.84%.
Jhunjhunwala's retaining inside the above stated are - Aptech (24.05%), Bilcare (8.48%), Mandhana Retail (12.74%), VIP Industries (3.69%), Prozone Intu (2.06%), Orient Cement (1.22%), NCC (nine.50%), MCX (3.92%), guy Infra (1.21%), Jaiprakash (2.06%), Escorts (8.12%), Firstsource (2.ninety%), Delta (7.forty eight%) andDB Realty (2.06%).
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