Why Rakesh Jhunjhunwala Sold its Majority Stake in Punj Lloyd Yesterday

February 24, 2011   ·   0 Comments

Rare Enterprises sells 26.5 lakh shares at Rs 65.29 on Wednesday. With this Rakesh Jhunjhunwala Stake in the Company reduces to 11.4 Lac Shares. Earlier, Rakesh Jhunjhunwala held 37.9 Lac Shares in the Company.


Why Rakesh Jhunjhunwala took such a Hard Decision to sell a Stock which is already trading at much Lower Levels of its even 2008 Lows. Stock is Currently trading at 60 Rs making Multi Years Low for the Stock. Does it indicate anything for the Upcoming More bad News for the Stock? Or Will it turn out to be a Another Bad Decision by Rakesh Jhunjhunwala as it turned out to be in Case of Delta Corp where Stock Price is Beaten Hard & Stock GOT Half of its Price in One Month.

Well, we need to wait & Watch. But one thing is per sure, that Libya News is not good for the Punj Lloyd as it has got lot of orders from that country. The Underperformance could actually continue. The stock should go in a Long Consolidation Phase to factor in the Libya News.

Also, as 13 & Supply of Oil is Closed from Libya, it is creating an Artificial Scarcity of Oil in the Commodity Market Taking the Oil close to 100$ per Barrel. Oil Could see higher Levels if the Libya Case doesn’t get resolved quickly.

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Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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