What Triggered The Slump In Shares of Phoenix Mills, Shoppers Stop
Shoppers walk through the Queens Center shopping mall in the Queens borough of New York, U.S. (Photographer: Peter Foley/Bloomberg)

What Triggered The Slump In Shares of Phoenix Mills, Shoppers Stop

Shares of mall operators Phoenix Mills Ltd. and Shoppers Stop Ltd. fell during trade on March 19 after media reports suggested that Mumbai’s civic body has made negative RT-PCR tests mandatory for entry into shopping malls.

If visitors don’t have a negative Covid-19 report, they will have to get a rapid antigen test done at the entrance of the mall, the Mint newspaper reported citing officials of the Brihanmumbai Municipal Corporation. The new rule, the report said, will come into effect on March 22.

This comes after Maharashtra Chief Minister Uddhav Thackeray had warned shopping malls and other public places to strictly follow Covid-19 norms.

Maharashtra has been the epicentre of the second wave of the Covid-19 pandemic in the country. The state reported a total of 25,833 new cases as of evening on March 18—the highest since the beginning of the pandemic in March 2020. The state capital Mumbai, too, witnessed its highest ever tally of 2,877 new cases.

Maharashtra Health Minister Rajesh Tope said in a tweet on March 18 that the state ranks second after Rajasthan in terms of vaccinating its citizens. He said the aim is to vaccinate a total of 3 lakh people daily in the state.

Shares of Phoenix Mills fell as much as 15% to a four-month low of Rs 652.8 before recovering from the day’s low. The stock is down for the third straight day. All 19 analysts that track the stock have a ‘Buy’ recommendation, according to Bloomberg data. Based on the 12-month Bloomberg consensus data, the stock has a return potential of 26.6%.

Shares of Shoppers Stop, too, fell for the third day in a row, declining as much as 5.3% to Rs 210.1. Seven out of the 13 analysts that track the stock have a ‘Buy’ rating, four suggest ‘Hold’ while two recommend ‘Sell’. Based on the 12-month Bloomberg consensus data, the stock has a return potential of 10.6%.

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