On Friday (March 31), the Supreme Court (SC) re-affirmed its ban on liquor sales in hotels, restaurants and other outlets within 500 metres of highways. While the ban was expected to be limited to only liquor shops, the SC clarified that the ban was applicable to bars and restaurants as well. The apex court had ordered the ban on sale of liquor near highways in December. Subsequently, a review petition was filed. The SC, however, set aside the petition, making the ban is effective from April 1, 2017, as per the original order.
The ruling came as a body blow to liquor stocks when the market opened on Monday with the likes of United Spirits, Radico Khaitan, Globus Spirits and Pincon Spirits dropping between 3% and 7%.
A section of analysts fear the ruling will have a sharp impact on the earnings of liquor companies. For instance, CLSA has been one of the first brokerages to cut its forw