As India queued up in long lines to withdraw cash, some of the country’s top investors too were feeling the pinch.
In declaring war against black money, the government, by banning existing Rs 500 and Rs 1,000 currency notes, prompted a cash crisis across the country, slowing consumption, hurting business and tanking equity markets.
In the last 11 trading sessions starting November 9, domestic equities witnessed severe selling pressure, pushing the benchmark index Nifty 50 down by 578 points or 6.8 percent.
The market fall took with it portfolios of top investors Rakesh Jhunjhunwala, Rekha Jhunjhunwala, Nemish Shah and Dolly Khanna - eroding each’s individual net worth by 8-10 percent.
Billionaire investor Rakesh Jhunjhunwala’s portfolio includes investments in over 23 companies, according to Bloomberg data. The combined value of his holdings in these 23 companies has fallen by more than 11 percent or over Rs 770 crore in the last 11 trading sessions. His wife Rekha Jhunjhunwala’s portfolio includes significant investments in 12 companies. The value of her holdings in these 12 companies fell by more than 15 percent, that’s over Rs 240 crore.
Together husband and wife Jhunjhunwala lost approximately Rs 1,000 crore in just 11 trading sessions. Of the 25 companies in which they have significant stakes, the top losers are
• Titan
• Delta Corp
• Dewan Housing Finance
• NCC
• Escorts
The value of their combined holding in watch and jewellery maker Titan fell by Rs 460 crore, as the company’s shares fell 17 percent over that period, more than the 13 percent decline in the BSE Consumer Durable index.
Another renowned investor Nemish Shah invests personally and through investment companies Gagandeep Credit Capital and ENAM Securities. Shah has substantial investments in 25 companies, according to data provided by Bloomberg. Since the demonetisation announcement, his portfolio has lost 8 percent, amounting to Rs 265 crore. The top losers here are
• MRF
• Elgi Equipments
• Asahi India
• JSW Steel
• TVS Srichakra
The holding value of Shah’s MRF shares, held via ENAM securities, dropped by Rs 107 crore, as the stock fell nine percent. That’s less than the Nifty Auto index, one of the top losers, that fell 13 percent in the same period.
Dolly Khanna, a famous but reclusive Chennai-based investor, saw her portfolio of 13 stocks lose 13 percent in value. According to data provided by Bloomberg, Dolly Khanna has material investments in 13 companies. The value of her holdings in these 13 companies fell by Rs 22 crore in the last 11 trading sessions. The biggest losses were in
• Nilkamal
• Thirumalai Chemicals
• Srikalahasthi Pipes
• Nocil
• RSWM
In the 11 trading sessions since the demonetisation announcement, the benchmark indices have lost 6.8 percent. Realty, cement, auto and consumption stocks have been the worst hit. The top five cement companies, Ultratrech Cement, Shree Cements, Ambuja Cements, Dalmia Bharat and Ramco Cements, saw their share prices fall between 8 to 25 percent. Meanwhile the auto, realty and consumer durable indices lost between 13 to 19 percent.
