ABFRL: Stock jumped 8% amid market decline, this is the reason for the rise

News Topical, Digital Desk : Aditya Birla Fashion and Retail Limited, a specialty retail segment company listed on the BSE 500, is witnessing a lot of buying today. The stock has risen by more than 8 per cent during the session. The stock has maintained a steady gain of 6 per cent. It is believed that the sentiments regarding the stock have become positive due to the monsoon movement and the steps taken at the policy level regarding consumption.

Why did the stock rise?

The reason for the rise in the stock is the steps taken at the policy level regarding demand. Due to the announcement of reduction in interest rates and GST rates and better monsoon, the market is now looking at the consumption based sector. The effect of this focus is being seen on the stock. The market believes that these steps will increase the purchases from the consumer. Apart from this, the company's own plans are also looking positive to the market. There is a change in the format of Pantaloon's store, the effect of which will be seen on the scale. At the same time, the loss-making unit is expected to break even by FY 2027. Along with this, the plan to open 100 stores annually is expected to have a strong impact on growth. At the same time, the brokerage has a positive comment on the company's first quarter results. The market estimates that with the expectation of increase in consumption, the benefit of the company's expansion plan regarding the store can be seen on the income and due to this, the signals have become positive for the stock and buying is being seen in the stock. 

How was the stock performance? The stock is continuously trading above the level of 80 today. The stock today rose more than 8 per cent to reach the level of 81.95 as compared to the previous close of 75.66. Currently, the market price is near the lower levels as compared to the high and low of the year. The stock had reached the year's low of 72 in June this year. Whereas in September last year, the stock was at the level of 122. The stock was in a range since the beginning of June. However, today it saw momentum.

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