Future Retail slumps after F&O exclusion

Future Retail slumped 8.06% to Rs 73 at 15:07 IST on BSE, extending intraday losses triggered by the National Stock Exchange's decision to exclude the stock from its derivatives segment.

Meanwhile, the BSE Sensex was down 409.50 points, or 1.98%, to 20,225.63.

On BSE, 6.34 lakh shares were traded in the counter compared with average volume of 5.85 lakh shares in the past one quarter.

The stock hit a high of Rs 79 and a low of Rs 72.60 so far during the day. The stock hit a 52-week low of Rs 63.30 on 1 August 2013. The stock hit a 52-week high of Rs 275.75 on 22 January 2013.

The stock had outperformed the market over the past one month till 20 November 2013, rising 1.73% compared with the Sensex's 1.19% fall. The scrip had, however, underperformed the market in past one quarter, rising 11.60% as against Sensex's 13.09% rise.

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

In a circular, the National Stock Exchange (NSE) said trading in futures and options (F&O) contracts of Future Retail would not be available with effect from 31 January 2014.

NSE added that the existing unexpired contracts of expiry months November 2013, December 2013 and January 2014 would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months.

Typically, a stock that exits the derivatives segment loses ground as investors rush to square off their F&O positions in the counter.

Future Retail reported net loss of Rs 9.86 crore in Q2 September 2013, as against net profit of Rs 8.60 crore in Q2 September 2012. Net sales declined 70.13% to Rs 356.06 crore in Q2 September 2013 over Q2 September 2012.

Future Retail, earlier known as Pantaloon Retail (India), is the flagship company of the Future Group. It is leading retailer that operates multiple retail formats in both value and lifestyle segment of Indian consumer market.

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