Shares in most Futures Group companies bottomed on stock exchanges Monday, shedding 20% in intraday trading, two days after Reliance Industries Ltd. canceled its $24,731 billion deal with Future because it said it could not be executed.
While Future Enterprises Ltd. fell 9.87% to ₹5.66 per share, Future Market Networks Ltd. by 14.30% to ₹7.07.
The biggest losers were Future Consumer Ltd. and Future Lifestyle Fashions Ltd., which fell 19.92% (₹3.90) and 19.89% (₹29.40). Also Future Supply Chain Solutions Ltd. fell 19.85% to £37.35.
Future Retail Ltd. however, managed to minimize its loss as the stock closed at £27.80, down 4.96%. The sharp correction came on a day when major indices suffered losses. The S&P BSE Sensex tumbled 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.
Vinod Nair, Head of Research at Geojit Financial Services, said: “Global markets have been colored red on underperforming earnings results, adding fresh concerns about elevated inflation, oil prices, wartime uncertainties and supply concerns.”
“Fear of slowing demand due to the ongoing COVID lockdown in China caused oil prices to plummet. Continued FII selling in India along with other global uncertainties favors a bearish trend in the near 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 the May series.”
“The next set of Q4 results and management commentary, global stock market trends and the development of rupee and crude oil prices will likely judge market sentiment in the near term,” he added.
“In addition, the ongoing Russia-Ukraine crisis and the sanctioning of Russian products would have a strong negative impact on global and Indian equities,” he said.
