Rakesh Jhunjhunwala has bought these PSU Shares and here is how they doing

Rakesh Jhunjhunwala has recently reiterated his faith in PSU stocks and has also invested in a few of them which has got him handsome returns in a short period of time
Rakesh Jhunjhunwala has bought these PSU Shares and here is how they doing

New Delhi: The moment big bull Rakesh Jhunjhunwala buys stake in a company, the shares shoot up in a matter of days. This is the reason many retail investors keep sniffing for the piece of information on the big bull's stake buying moves. As per the information on the shareholding pattern of the companies available on the stock exchanges, Jhunjhunwala has bought a stake in a PSB Canara bank and National Aluminium Company Limited (NALCO). In an interview given to a business news channel days ahead of Diwali, Jhunjhunwala had said that he is bullish on PSU shares and the market on the whole and totally unperturbed by the recent correction.

"I do not see the Nifty going below the 16,500 mark. The market will be higher from here (until) next year," Rakesh Jhunjhunwala said in an interview with CNBC-TV18 on November 1.

Canara Bank shares hit a 52-week high

Public Sector Bank stock Canara bank is one of the three bank stocks that Rakesh Jhunjhunwala owns, apart from Federal Bank and Karur Vysya Bank. The ace investor had picked up a stake in Canara Bank through a QIP earlier in September, buying 2,88,50,000 equity shares of face value Rs 10 each. According to the quarterly filings of the Canara bank, Jhunjhunwala owned a total of 2,90,97,400 equity shares of the company on September 30, translating to a 1.6 percent stake in the company.

The PSU Bank stock was trading at Rs 168.95 apiece on September 30, has now hit its 52-week high. On Friday the company shares closed at Rs 229.00 apiece which is a little more than a 30 percent rise in past one month. The value of Rakesh Jhunjhunwala's 1.6% stake at the end of September was Rs 503.38 crore. As the stock price moved higher, the value of Rakesh Jhunjhunwala's stake in the company has rallied to Rs 660.67 crore. Only Canara bank investment has helped Rakesh Jhunjhunwala earn Rs 157.28 crore in a little over a month.

NALCO stock rallied and now dragging

According to September month's quarterly report of the Mining PSU NALCO, Jhunjhunwala owned 2,50,00,000 equity shares which make for a 1.36% stake in the company. This is the first time Rakesh Jhunjhunwala appeared on the shareholding pattern of the company. It is mandatory on companies to report on the person who owns a stake of 1% or more in their quarterly filings. The Life Insurance Corporation of India (LIC) also owns a 1.1 percent stake in the company, apart from Jhunjhunwala.

NALCO's stock too hit its 52-week high at Rs 121.70 apiece on October 18. Though later as the metal shares dragged around Diwali, NALCO shares traded at around Rs 99 and closed at Rs 100 apiece last Friday. (Equity Watch Bureau)

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated)

PSU Watch