Retail stocks down, Pantaloon Retail tanks over 12%

NEW DELHI: Shares of retailers such as Pantaloon Retail, Shoppers Stop, V2 Retail and Trent Ltd, which rose last week on reports the government may allow foreign direct investment ( FDI) in multi-brand retail, crashed in today’s trade.

Describing the move as against the interests of the country, BJP has threatened to launch nationwide agitation against the central government’s move to allow foreign direct investment (FDI) in multi-brand retail.

“Party leader and Public Accounts Committee chairman Murli Manohar Joshi said it would harm the country’s small businesses,” said an ET report.

“The decision on FDI in the sector has been delayed in view of concerns that it would adversely impact neighbourhood kirana shops, which account for over 90 per cent of $590 billion retail trade,” the report added.

Several global retailers like Wal-Mart and Tesco are waiting in the wings to enter India’s multi-brand retail segment.

Pantaloon Retail closed 12.3% lower at Rs 173.70, Shoppers Stop dropped 3.09% to Rs 344.65, V2 Retail Ltd slipped 1.2% to Rs 15.90 and Trent Ltd closed 3.3% down at Rs 998.75.

Analyst Call:

Sandeep Wagle, Founder & MD, APTART Technical Advisory Services

Breaking Rs 180 is quite a possibility for Pantaloon Retail. This stock had moved up from Rs 150 levels up to Rs 203 on news regarding FDI in retail.

So, this is a correction though a little sharp and it is quite possible that Rs 180 may be broken. However, I do not see the bottom of Rs 150 being broken. It may go down to Rs 170-172.