Pantaloon Retail, Shoppers Stop gain on FDI news
Shares on Pantaloon Retail India Ltd and Shoppers Stop were trading higher on Thursday, extending previous sessions gains, on the buzz that the govt may allow FDI.
By ET Online | Updated:
NEW DELHI: Shares on Pantaloon Retail India Ltd and Shoppers Stop were trading higher on Thursday, extending previous sessions gains, on the buzz that the government may allow foreign direct investment (FDI) in multi-brand retail, reports ET Now.
The Industry Ministry has circulated a draft Cabinet note for allowing foreign direct investment (FDI) in multi-brand retail, a move which will allay the industry’s concern over policy paralysis.
At present, the country allows 51 per cent FDI in single brand retail, 100 per cent in cash and carry (wholesale) business, but bars it in multi-brand retail.
The Committee of Secretaries had recommended allowing 51 per cent FDI in the politically-sensitive sector with several riders. These included a minimum foreign investment of USD 100 million.
At 01:07 p.m., shares of Pantaloon Retail India Ltd were trading 9% higher at Rs 185.20 on the National Stock Exchange. The stock jumped nearly 13% in early trade to touch its day’s high of Rs 199.60. For the year the stock has corrected nearly 50% on the NSE.
Shares of Shoppers Stop Ltd were trading 1.7% higher at Rs 364. The stock has hit a high of Rs 382.45 on the NSE.
Retail stocks have been gaining momentum on reports that a final Cabinet note on FDI in retail is to be issued next week.
The Industry Ministry has circulated a draft Cabinet note for allowing foreign direct investment (FDI) in multi-brand retail, a move which will allay the industry’s concern over policy paralysis.
At present, the country allows 51 per cent FDI in single brand retail, 100 per cent in cash and carry (wholesale) business, but bars it in multi-brand retail.
The Committee of Secretaries had recommended allowing 51 per cent FDI in the politically-sensitive sector with several riders. These included a minimum foreign investment of USD 100 million.
At 01:07 p.m., shares of Pantaloon Retail India Ltd were trading 9% higher at Rs 185.20 on the National Stock Exchange. The stock jumped nearly 13% in early trade to touch its day’s high of Rs 199.60. For the year the stock has corrected nearly 50% on the NSE.
Shares of Shoppers Stop Ltd were trading 1.7% higher at Rs 364. The stock has hit a high of Rs 382.45 on the NSE.
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Retail stocks have been gaining momentum on reports that a final Cabinet note on FDI in retail is to be issued next week.
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