Future Retail recovers after 6-day 14.9% slide

Meanwhile, the S&P BSE Sensex was up 223.43 points or 1.19% at 19,050.59.

On BSE, 1.88 lakh shares were traded in the counter as against average daily volume of 5.88 lakh shares in the past one quarter.

The stock hit a high of Rs 127.70 and a low of Rs 122 so far during the day. The stock had hit a 52-week low of Rs 119.25 on Thursday, 13 June 2013. The stock had hit a 52-week high of Rs 275.75 on 22 January 2013.

The stock had underperformed the market over the past one month till 13 June 2013, sliding 20.41% compared with the Sensex's 4.39% fall. The scrip had also underperformed the market in past one quarter, falling 32.5% as against Sensex's 2.77% decline.

The mid-cap company has equity capital of Rs 46.31 crore. Face value per share is Rs 2.

Shares of Future Retail had tumbled 14.95% in six trading sessions to settle at Rs 121.10 on Thursday, 13 June 2013, from a recent high of Rs 142.40 on 5 June 2013, after the government on 6 June 2013, in a clarification of rules announced last year, said that the foreign supermarkets entering India must invest in new supply chain infrastructure, such as warehouses and cold-storages, rather than buying existing assets. The government allowed global supermarket operators to enter India in September 2012, and stipulated at the time that at least 50% of the investment made by the foreign company must be in supply chain infrastructure.

The government said investments in the supply chain and logistics networks could be made in any Indian state, irrespective of whether the state supports the entry of foreign retailers. The government also said global retailers have to source 30% of their processed goods, not including fresh produce, from small industries and will only be allowed to sell these goods through retail stores, and not wholesale outlets.

The rules are a big setback for existing domestic retailers such as Bharti Retail, Future Retail and Spencer's that were hoping to cash out by selling at least part of the stake in front-end retail stores to foreign retail giants.

Future Retail's net profit declined 54.51% to Rs 2.47 crore on 17.59% drop in net sales to Rs 911.46 crore in Q1 March 2013 over Q1 March 2012.

Future Retail, earlier known as Pantaloon Retail (India), is the flagship company of the Future Group. It has presence in 93 cities and 60 rural locations across the country through over 17 million square feet of retail space.

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