Retail stocks rally as FDI norms take effect

Retail stocks gathered momentum in the early trade where Pantaloon Retail shot-up by 11.61% to Rs 195, while Provogue zoomed 10.78% to Rs 18.70 on the BSE.

Among others, Koutons Retail was locked at upper circuit limit of 5%, while Trent surged 5.2%, Shoppers Stop (4.8%) and Brandhouse Retails (7.5%).

Brokers said buying emerged after the government went ahead implementing its decisions to allow FDI in multi-brand retail.

Some of these stocks were beaten down yesterday.

Last evening, unfazed by opposition even from its own allies, government today went ahead implementing its decisions to allow FDI in multi-brand retail and liberalise foreign investment in aviation and broadcasting sectors.

Under the notification relating to FDI in multi-brand retail, multinational companies can invest up to 51% to open stores in 10 states and UTs which have so far agreed to implement the government decision.

Stock markets cheered the move and the BSE 30-stock index, Sensex, was in the green at 18,650.72 - up 301.47 or 1.64% at 11.07 hrs.