9,111.90363.15
Stock Analysis, IPO, Mutual Funds, Bonds & More

Coronavirus Hit! Mukesh Ambani loses $5 billion; Ajim Premji $869 million, Adani $496 million

This stock rout has wiped off Rs 11.52 lakh crore of equity investors’ wealth on Dalal Street.

, ETMarkets.com|
Last Updated: Feb 28, 2020, 04.59 PM IST
0Comments
1
Emkay Research has ‘buy’ rating on Tata Motors with a price target of Rs 238, which means a 64 per cent potential upside from last close. Prabhudas Lilladher has a ‘hold’ recommendation with a price target of Rs 185.
Global risk aversion sparked off by coronavirus has wiped out major wealth for top Indian billionaires.

Reliance Industries’ Chairman Mukesh Ambani, the richest man in India and whole of Asia, has lost some $5 billion of his wealth year to date in notional terms.

Aditya Birla Group Chairman Kumar Mangalam Birla is poorer by $884 million, as per Bloomberg Billionaire Index. IT tycoon Ajim Premji’s wealth is down by $869 million and industrialist Gautam Adani’s by $496 million in just two months.

Uday Kotak and Sun Pharma’s Dilip Sanghvi also are among the biggest losers, as stocks of their companies have received a huge battering, destroying major wealth.

Most of this wealth erosion happened over the last 15 days, when domestic equity indices have come tumbling down. BSE Sensex has crashed nearly 3,000 points in 11 sessions since February 12, when Dalal Street first caught the chill from the virus. This stock rout has wiped off Rs 11.52 lakh crore of equity investors’ wealth on Dalal Street.

In tandem, broader market indices have also seen severe correction during this period, wiping most of their gains logged so far in 2020.

Ambani snip 1

Among the large Indian business conglomerates, Reliance Group has been the most affected in terms of loss of market capitalisation of their listed stocks. The market-cap of all RIL firms have come down by Rs 53,706.40 crore between February 13 and February 27. In Friday's market crash, as Sensex plunged 1,100 points, RIL shares fell 2.8 per cent.

RIL group firm Reliance Industrial Infrastructure has taken the biggest hit, down over 13 per cent since February 12. Reliance Industries and Network18 have slumped 6 per cent, TV18 Broadcast 7 per cent and Den Networks 2 per cent. However, shares of Hathway Bhawani Cabletel & Datacom, which RIL acquired recently, has soared over 16 per cent.

Freaky Friday! We have seen worse than this in Sensex history

of 6
Next
Prev
Play Slideshow

Carnage on D-Street

28 Feb, 2020
Domestic equity indices witnessed one of the worst crashes in a single day on Friday as coronavirus scare sent equity investors scurrying for cover amid a global risk aversion and equity meltdown. The virus has now invaded all six habitable continents. US markets saw their worst fall in overnight trade as local governments started preparing to contain the spread of the virus in the country. Indian indices followed suit, with Sensex tumbling over 1,100 points. If the market sustains at this level till close of trade, it will be its third largest pointwise fall ever.Here we revisit some of the worst crashes in Sensex's history:
Next

Despite this about turn in Reliance Industries’ fortunes, analysts remained positive on the stock. As many as 26 analysts had either a ‘buy’ or ‘outperform’ rating on the stock. Only one analyst had a ‘sell’ call, as per Reuters data.

Tata Group companies have lost Rs 41,930 crore. Shares of as many as 21 of group firms have slipped into the red during this period. Automotive Stampings & Assemblies and Tata Teleservices have fallen 25 per cent each. Tata Motors and Tata Elxsi dropped 15 and 12 per cent, respectively.

Tata Motors-owned Jaguar Land Rover warned that its production schedules in the UK as well as India are under strain due to its supply chains in coronavirus-hit China. In fact, last week the company flew Chinese parts in suitcases to Britain to maintain production.

On Friday, Tata Motors fell 9 per cent and Tata Steel 6.7 per cent.

Emkay Research has ‘buy’ rating on Tata Motors with a price target of Rs 238, which means a 64 per cent potential upside from last close. Prabhudas Lilladher has a ‘hold’ recommendation with a price target of Rs 185.

Among other major business houses, Adani group has lost over Rs 27,100 crore in market capitalisation of its stocks, Aditya Birla Rs 17,500 crore and Wadia Group which controls firms like Britannia has lost Rs 3,300 crore.

Analysts have mixed outlook for the market as they fear the risk of coronavirus outbreak becoming pandemic.

Marc Faber, author of the Gloom, Boom & Doom Report, on Friday said markets have significant downside risks, given that the coronavirus is destroying several industries, and also because bluechips are trading at rich valuations.

What virus? Asian investors still think markets will end higher in 2020

of 8
Next
Prev
Play Slideshow

Analysts remain calm

28 Feb, 2020
Keep calm and carry on is the message from Asian financial experts even as the region’s emerging markets take a battering from the spread of the deadly coronavirus.Note: Inputs from Bloomberg survey was conducted from Feb. 14 to Feb. 21.The survey participants were:Asset Management One Co.AxiCorpBank of Singapore Ltd.BNP Paribas Asset ManagementCiti Private BankDeutsche Bank Wealth ManagementFujitomi Co.Kasikornbank PclLoomis, Sayles & Co.Malayan Banking Bhd.Mitsubishi UFJ Kokusai Asset Management Co.Mizuho Research Institute Ltd.Monex Inc.Office Fukaya, Research & ConsultingSiam Commercial Bank PclScandinavian Enskilda Banken ABUBS Asset ManagementUOB Private Bank
Next

However, seasoned Dalal Street investors like Hiren Ved of Alchemy Capital Management, feels this meltdown could be a good time to accumulate good stocks.

Also Read

Jio-Microsoft partnership will define this decade: Mukesh Ambani

Mukesh Ambani's RIL to consolidate media and distribution business

Mukesh Ambani donates additional Rs 500 cr to PM's emergency fund

Reliance Industries surges 11% as Mukesh Ambani, family raise stakes

Coke’s James Quincey talks retail tieups with Mukesh Ambani

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service