Liquor stocks lure investors after reports of SC clarification

Shares of ten liquor companies surged by 1.44% to 12.64% at 15:00 IST on BSE after report suggested that Supreme Court clarified that there will be no liquor-ban on national highways within cities.

Meanwhile, the S&P BSE Sensex was up 86.50 points, or 0.27% to 31,660.18.

Radico Khaitan (up 2.1%), United Spirits (up 3.94%), Associated Alcohols & Breweries (up 10%), Pioneer Distilleries (up 2.05%), Tilaknagar Industries (up 2.3%), G M Breweries (up 6.2%), United Breweries (up 1.44%), Empee Distilleries (up 2.5%), Globus Spirits (up 12.64%), and Khoday India (up 5%) gained.

The apex court reportedly also clarified that the ban on liquor vends near national highways does not apply to licensed establishments falling within municipal areas.

The SC order was in response to a special leave petition filed by an NGO - Arrive Safe Society of Chandigarh - against the Union Territory of Chandigarh. The SC had dismissed this petition on 11 July 2017 and had indicated that its reasons for dismissal would follow.

According to the Federation of Hotels and Restaurant Association of India (FHRAI), the apex court's order would ease problem faced by the hotel and restaurant industry by about 70%, report added.

The order to ban liquor outlets within 500 metres of national and state highways from 1 April 2017 was first issued on 15 December 2016.

Powered by Capital Market - Live News