United Spirits shares tanked on Monday after promoter Vijay Mallya said a deal with UK drinks giant Diageo is not a given. Mr Mallya's statement was a setback for investors who had been accumulating United Spirits shares on hopes of a deal with Diageo.
United Spirits shares have jumped 50 per cent in the last three months on hopes of a deal with Diageo. Institutional investors hold 51 per cent in United Spirits of which 46.19 per cent is held by FIIs. So, if a possible deal with Diageo falls through, it will hit sentiments.
However, the stock gained sharply today, possibly on account of value buying. At 10.40 a.m., United Spirits shares traded 6 per cent higher at Rs 1,159.50 on the BSE.
Shares in Kingfisher Airlines gained for the fourth straight day. Mr Mallya said he has been looking for partners for the airline and said two investment bankers had been hired as part of the search.
However, United Breweries shares saw some profit taking and traded 3 per cent lower. UB Holdings shares were flat.