Shares of retail companies today soared by up to 14.25 per cent in an otherwise sluggish stock market amid reports that the government may allow foreign direct investment in multi-brand retail sector.
Koutons Retail India stock gained 14.25 per cent,while Shoppers Stop was up 11.34 per cent and Future Group’s Pantaloon Retail India climbed 6.47 per cent.
Among others,Trent soared 11.4 per cent,Provouge India (9.74 per cent),Brand House Retails (10.08 per cent) and Store One Retail India (4.93 per cent).
Brokers said retail stocks soared on reports that the government is likely to revive an order allowing foreign investors to own majority stakes in Indian supermarkets and department stores after the election of a new President later this month.
The Union Cabinet had approved opening of multi-brand retail for foreign investors,but the decision was kept on hold following opposition from UPA ally Trinamool Congress and other political parties.
India allows 100 per cent FDI in wholesale and single- brand retailing,but opening up multi-brand retail is a politically thorny issue and is facing stiff opposition from various quarters.
Stocks More on Provouge India
Company INFO More on Pantaloon