Kolkata: The party that began in the stock of Sula Vineyards and GM Breweries ended abruptly on Thursday, June 12 with both shares declining sharply as trading began on a somber note. Around 10:30 am, the Sula Wines stock was trading at Rs 315.05, down 5.75 (or 1.79%). The GM Breweries share was quoting at Rs 773.30, down Rs 20.95 (or 2.64%).
The decline in prices came against a backdrop of the overall decline in the benchmark indices Sensex and Nifty. Around 10:40, Sensex was trading at 82,353.28, down 162.14 points or 0.20%, while Nifty was at 25,092.75, down 48.65 or 0.19%.
How the party began
On Wednesday, June 11, Sula Wines closed at Rs 319.90, up 22.90 (or 7.71%), while GM Breweries ended the session at Rs 789.35, up 72.20 (or 10.07%). The 52-week high and low of Sula Wines are Rs 528.10 and Rs 243.00 respectively while the highs and lows of GM Breweries are Rs 1,049.00 and Rs 579.95. At one point of time on June 11, the stocks of Sula Vineyards jumped 13%, while GM Breweries surged 18%, after the Maharashtra government excluded wine and beer from the steep hike in state excise on alcoholic beverages.
The Maharashtra government raised excise duty on IMFL (Indian-made foreign liquor) by more than 50%. Trade analysts said the administration’s move can jack up retail prices up by more than 60%. Incidentally, country liquor and imported premium liquor also came in for the revenue-raising step. Their retail prices can rise by 14% and 25% respectively, indicated reports. Naturally, wine and beer manufacturers began celebrating the exclusion from the move.
The minimum retail price of premium foreign liquor brands could hit Rs 360, according to reports. The excise duty on IMF: with a manufacturing value up to Rs 260 per bulk litre has been hiked three times to 4.5 times of the manufacturing value.
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The party began after Maharashtra government announced a steep hike in state excise duties but excluded wine and beer from the exercise. Prices of both stocks declined as trading began on Thursday, June 12. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
