Retail stocks rally as FDI norms take effect
Stocks of retail companies today climbed over 11% after the government implemented its decision to allow FDI in multi-brand retail sector.
September 21, 2012 / 11:24 IST
Stocks of retail companies today climbed over 11% after the government implemented its decision to allow FDI in multi-brand retail sector.
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. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
