Shares of Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala’s company were trading in another firm market on BSE on Tuesday.
Rakesh Jhunjhunwala, one of India’s richest tycoons, has passed away in Mumbai at the age of 62 following a heart attack.
Among its holdings, Aptech’s market cap fell 6 percent on the day, but ended flat on the BSE. Others such as Star Health and Allied Insurance Co. rose about half a percent, while Wockhardt lost 2 percent.
Top titan company in the Jujuhunwala portfolio was up 0.8% at Rs 2,494 per share, after hitting an intra-day low of Rs 2,434.
Rakesh Jujuhunwala and Rekha Jujuhunwala held 5.05 per cent stake in the Tata Group company.
However, Tata Motors, Tata Motors DVR, Orient Cement and DB Realty gained 0.5 to 4 percent on the BSE. In comparison, the S&P BSE Sensex rose 0.6%.
Rakesh Jujuhunwala and his wife Rekha Jujuhunwala held more than 1 percent stake in these companies till the end of the June quarter.
According to analysts, the growth impact on these stocks will be short-lived.
Ambaresh Baliga, an independent market analyst, says short-term emotional impact on related stocks. Many market players knew about Rakesh’s health. RARE Enterprises is a professionally managed company. Before taking the investment call, consider the fundamentals of each company, says Baliga.
IDBI Capital’s AK Prabhakarm believes that the decision to stick with these stocks should be based solely on how each company is performing.
“The stocks may see a knee-jerk reaction and bounce back. Investors are better off basing their decisions on the fundamentals of these companies,” said AK Prabhakar, head of research at IDBI Capital.
On Wednesday, the markets await the minutes of the US Federal Reserve’s July meeting. In addition, Eurozone Q2 GDP data will also be released today. Back home, stock-based action will continue to lead investors.