Shares of most Future Group companies hit their lower circuit with a 20% fall in intraday trade on stock exchanges on Monday, two days after Reliance Industries Ltd canceled its Rs 24,731 crore deal with Future, saying Given that it cannot be implemented.
While Future Enterprises Ltd fell 9.87% to ₹5.66 per share, Future Markets Networks Ltd fell 14.30% to ₹7.07.
The biggest losers were Future Consumer Ltd and Future Lifestyle Fashion Ltd, falling 19.92% (₹3.90) and 19.89% (₹29.40). Future Supply Chain Solutions Ltd also fell 19.85% to Rs 37.35.
However, Future Retail Ltd managed to cover its losses as the stock closed down 4.96% at ₹27.80. The sharp fall came on a day when major indices suffered losses. The S&P BSE Sensex fell 617.26 or 1.08% to 56,579.89. The NSE Nifty 50 index also fell 218 points or 1.27% to 16,953.95.
“Global markets were in the red on less-than-earnings results, raising fresh concerns over inflation, oil prices, war uncertainties and supply issues,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Oil prices fell due to fear of loss of demand due to prolonged COVID lockdown in China. Continued selling of FIIs in India along with other global uncertainties is favoring a bearish trend in the near term.
Mitul Shah, Head of Research, Reliance Securities, said, “The market may remain volatile this week as traders change their positions in the F&O segment from April series to May series.
“Next Q4 results and management commentary, global stock market trends and volatility in rupee and crude oil prices are likely to gauge market sentiment in the near future,” he added.
“Furthermore, the Russia-Ukraine crisis and sanctioning of Russian products will have a high negative impact on global and Indian equities,” he added.