Business Today
Loading...

Future Retail share falls 5% after five sessions, here's why

Future Retail share fell to an intraday low of Rs 86.65, falling 4.99% against previous close of Rs 91.20

twitter-logoBusinessToday.In | November 26, 2020 | Updated 13:25 IST
Future Retail share falls 5% after five sessions, here's why
Future Retail stock hit upper circuits of 10%, 10% and 5% , respectively in the previous three sessions

Future Retail share fell in early trade today after five sessions of consecutive gains. Sentiment in the  Future Group stock turned weak after National Stock Exchange (NSE) warned the firm it risked regulatory action for not making timely market disclosures about efforts by Amazon.com to block a disputed asset sale.

The stock touched an intraday low of Rs 86.65, falling 4.99% against previous close of Rs 91.20 on BSE.

The small cap stock hit upper circuits of 10%, 10% and 5% , respectively in the previous three sessions.

There were only sellers, no buyers for the stock in trade today. The share trades higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.

Future Retail stock has lost 73.65% in one year and fallen 74.66% since the beginning of this year.

In a week, the share has risen 20.77%. Market cap of the firm fell to Rs 4,698 crore.

According to a Reuters report, previously unreported e-mails exchanged between the NSE and Future show the stock exchange repeatedly requested the company submit more details of the arbitration order, seeking details of possible impact on financials, lenders and the Reliance deal.

NSE on October 27 asked Future why it did not disclose the commencement of the arbitration proceedings and not shared the impact of the order. Future in response said it believed a disclosure wasn't required. NSE's listing compliance division rejected he explanation.

Future Retail share hits upper circuit for third straight session

It asked for a series of disclosures be made within hours, "failing which appropriate actions may be initiated", the emails showed.

Future Group stocks have been rising since last Friday after the regulator Competition Commission of India (CCI) cleared acquisition of retail, wholesale, logistics and warehousing businesses of Future Group by Reliance Retail Ventures Limited and Reliance Retail and Fashion Lifestyle Limited.

E-commerce firm Amazon purchased a 49% stake last year in one of Future Group's unlisted firms, with the right to buy into the listed flagship Future Retail Ltd. The US firm has been opposing the deal between Future Group and Reliance Industries.

Amazon had approached the CCI and the country's market regulator SEBI, claiming that its pre-existing agreements with the unlisted Future Coupons Ltd barred a transaction with a number of persons and companies, including Ambani's Reliance Group, which is fast expanding its e-commerce business and threatening the dominance of the U.S. giant.

The deal is yet to receive approval of market regulator SEBI.

Share Market News Live: Sensex up 150 points, Nifty at 12,900; Adani Ports, ONGC, GAIL, SBI Life top gainers

By Aseem Thapliyal

  • Print
  • COMMENT
BT-Story-Page-B.gif
A    A   A
close