Shares of alcohol and brewery companies rallied over 19 per cent in intraday trade on the Bombay Stock Exchange (BSE) on Monday, in an otherwise weak broader market, after the central government allowed the opening of liquor shops with certain riders. Among listed breweries and distilleries, Associated Alcohols & Breweries was the top performer, followed by GM Breweries, United Breweries, Radico Khaitan, Globus Spirits and United Spirits, among others.
Shares of Associated Alcohols & Breweries surged as much as 19.32 per cent to touch an intraday high of Rs 202.85 against the previous close of Rs 170 on the BSE. There was spurt in volume trade as 83,000 shares changed hands over the counter as compared to two-week average volume of 10,000 shares.
In a similar trend, GM Breweries shares were trading at 15.65 per cent higher at Rs 432.25, while Radico Khaitan stock jumped 6.23 per cent to Rs 312.20. United Breweries surged 5.80 per cent to Rs 992.60, while Globus Spirits stock advanced 4.98 per cent to Rs 97 and United Spirits too gained 1.49 per cent close at Rs 544.50 on the BSE.
In contrast, the BSE Sensex was trading 1,869 points, or 5.55 per cent, lower at 31,848.
The central government on Friday allowed liquor shops to resume operations with certain restrictions during the third phase of the lockdown, beginning May 4. They are allowed to open all across the country, excluding containment areas. As per the government order, only standalone shops will be allowed to sell liquor; malls or liquor shops in shopping complexes will remain closed.
According to market experts, breweries and distilleries will report volume decline in March quarter earnings report due to decline in alcohol consumption in India in wake of coronavirus-led nationwide lockdown.