Rakesh Jhunjhunwala portfolio stock rises 13% today despite stock market crash

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Rakesh Jhunjhunwala portfolio: Amid bloodbath at Indian stock market today, one of the Rakesh Jhunjhunwala stocks Indiabulls Housing Finance share has shot up around 13 per cent in today’s session. Following Indian market sentiment, Indiabulls Housing Finance share price today opened downside but soon started moving northward and hit intraday high of 259.80 per share, giving fresh breakout at 250 levels. According to stock market experts, this sharp upside movement in the Big Bull-owned stock is due to the news of promoters of India’s second largest housing finance company cutting their stake to below 10 per cent.

As per stock market experts, promoters’ cutting down their stake in the housing finance company is good news for investors as it would now move towards a CEO-driven professionally equipped company. They said that the stock has given fresh breakout at 250 and if it manages to close above this level, then we may see this stock to go up to 300 per share levels in short-term.

Highlighting the reason for rise in this Rakesh Jhunjhunwala portfolio share; Avinash Gorakshkar, Head of Research at Profitmart Securities said, “This rise in Indiabulls Housing Finance share price can be attributed to two major reasons — news of promoters cutting down their stake below 10 per cent and Brickwork Rating India Pvt Ltd upgrading its ratings from negative to stable. Recently, there are reports in media that promoters of the company are going to cut down their stake to below 10 per cent, which has neither been accepted nor denied by the company. So, after two days of such news report, stock market investors have responded strongly to this news. Meanwhile the upgradation of its ratings by Brickwork Rating India Pvt Ltd has been shared by the BSE exchange.”

On how promoters’ cutting down their stake below 10 per cent in the company will aid the company; Ravi Singhal, Vice Chairman at GCL Securities said, “After the promoters’ stake coming below 10 per cent, the housing finance company will inch closer to become a more professional company. It will become a CEO-driven company bringing more transparency in its business and such strong response by market despite today’s stock market crash is a glaring example of it.”

Advising investors to buy Indiabulls Housing Finance shares at current levels; Sumeet Bagadia, Executive Director at Choice Broking said, “The Rakesh Jhunjhunwala stock has given fresh breakout at 250 and it may soon go up to 275 to 300 if it manages to close above 250 per share levels today. One can buy this counter at current market price maintaining stop loss at 235 for the above-mentioned target for short-term.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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