Future Capital, Pantaloon rally 9% on huge volumes

Future Capital Holdings and Pantaloon Retail, both Future Group companies, have rallied more than 9% on the back of huge volumes.

Future Capital Holdings rallied 19% at Rs 200, extending Tuesday’s rally of 4%. The stock has appreciated 43% in the past two weeks, compared with sub-1% gain in the benchmark index Sensex.

The trading volumes on the counter jumped more than ten-fold. As many as 4.19 million shares have changed hands on the counter till 1125 hours, against an average 335,289 shares traded daily in the past two weeks.

Pantaloon India is trading higher by 9% at Rs 358 on the NSE. A combined two million shares have changed hands on the counter so far, compared to an average 725,000 shares traded daily in the last ten trading days.

Going by the market buzz, the promoter, Kishore Biyani, along with group company Pantaloon Retail may exit from the financial services arm of the Future Group. The total holding of the parent group is 61.06%.

The funds raised from stake sale will be used to repay part of its debt, the newspaper report suggests.