After Rakesh Jhunjhunwala sells 12 lakh Escorts shares, price falls! What must investors do? Expert reveals

Ace investor Rakesh Jhunjhunwala has recently sold his holdings in a big tractor maker. After the arrival of new year 2021, various listed companies have been submitting their shareholding pattern at the BSE and that also reflects about the buying or selling activity by Rakesh Jhunjhunwla. While the Big Bull added new Tata Group company shares in his portfolio, he also trimmed some of his shareholdings and Escorts is one such stock.

As per the Escorts shareholding pattern submitted at the BSE, Jhunjhunwwala had 76 lakh Escorts shares in the September ended quarter that slipped to 64 lakh in December ended quarter — reducing his shareholding to 4.75 per cent from 5.64 per cent in the company. The news about Jhunjhunwala selling out his Escorts stocks came out on 13th January and from that day, the auto stock has fallen and closed on Friday at Rs 1319.

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Going through the BSE data, on 13th January 2021, the Escorts share price had closed at Rs 1364.40 while it closed at Rs 1319 on Friday i.e. on 15th January that means the stock has fallen around 3.3 per cent over the next two days.

Speaking on the Escorts share price outlook Sumeet Bagadia, Executive Director at Choice Broking said, "The dip visible in Escorts shares is sentimental. Overall, Escorts share outlook is

strong and has strong support at Rs 1280 levels and one should buy Escorts stock at around Rs 1300 for the target of Rs 1350 to Rs 1380 in next one week to ten days."