Future group firm stocks crash as Reliance nixes deal

Future group firm stocks crash as Reliance nixes deal

Most Future Group companies’ stocks on Monday hit their lower circuit at the stock exchanges by losing 20% in intraday trade, two days after Reliance Industries Ltd. called off its ₹24,731-crore deal with Future saying it could not be implemented.

While Future Enterprises Ltd. fell 9.87% to ₹5.66 a share, Future Market Networks Ltd. fell 14.30% to ₹7.07.

The biggest losers were Future Consumer Ltd. and Future Lifestyle Fashions Ltd. that plunged 19.92% (₹3.90) and 19.89% (₹29.40). Future Supply Chain Solutions Ltd. too plunged 19.85% to ₹37.35.

However Future Retail Ltd. managed to minimise its loss, as the stock closed at ₹27.80, down 4.96%. The sharp correction came on a day when key indices suffered losses. The S&P BSE Sensex plunged 617.26 or 1.08% to 56,579.89. The NSE Nifty 50 index too plunged 218 points or 1.27% to 16,953.95.

Vinod Nair, Head of Research at Geojit Financial Services, said, “Global markets were painted red due to below-par earnings results, adding fresh concerns to elevated inflation, oil prices, war uncertainties and supply issue.”

“Fear of waning demand due to prolonged COVID lockdown in China led to oil prices tumbling. Continued FII selling in India along with other global uncertainties is favouring bear trend in the short-term,” he said.

Mitul Shah, Head Of Research at Reliance Securities said, “The market is likely to remain volatile this week as traders roll over their positions in the F&O segment from the April series to May series.”

“The next batch of Q4 results and management commentary, global stock market trends, and the movement of rupee and crude oil prices are likely to assess market sentiments in the near future,” he added.

“Moreover, the ongoing Russia-Ukraine crisis and sanctioning of Russian products would have high negative bearings on global and Indian equities,” he further said.

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Source: Around the Globe

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