Shares of retail companies rallied on Thursday amidst reports that the government plans to allow foreign direct investment in multi-brand retail sector, paving the way for retail majors such as Wall Mart and Carrefour to enter India in a bigger way.
The government currently allows 100% FDI in wholesale and single-brand retailing.
Shares of Future Group’s Pantaloon jumped by 3.4% to Rs 197, while Koutons’ shares gained 18.3% to R11. Other retail major including Provogue and Shopper’s stop saw their share prices jump by 9.8% and 9.3% respectively.
The government, however, said that it will take a decision at the right time. “There is always a right time to take these kind of decisions and the government is seized of this issue,” said R Gopalan, economic affairs secretary. “I think, it is too early for me to say, when the decision will be announced.”