Intraday Spotlight: This smallcap retail stock has rallied 9 per cent today

The stock zoomed as Reliance Industries announces its takeover.

Future Retail Ltd, which is also known as Big Bazaar as departmental retail chain stores, has jumped today by over 9 per cent in the morning session from its previous close of Rs 45.80. The stock opened at Rs 46.95 and has made its day high of Rs 51.75. As of 12:10 pm today, the stock was trading at Rs 49.90 on the BSE.   

The retail giant of India, Reliance Retail has been spanning its empire across India. And now, even with the legal opposition faced by Amazon India, Reliance Industries Ltd (RIL) has initiated the takeover process of Future Retail Ltd. RIL will be rebranding almost 200 Big Bazaar stores. Currently, the stores are being shut down across the nation. The company has been facing losses for last consecutive eight quarter. 

The company is facing difficulties in financing its working capital needs. A huge chunk of losses is putting pressure on the operations. So the big question is whether Reliance Retail can turn the tables in such a distressing situation. 

What do you think? Let us know in the comments.