Retail stocks shoot up on FDI notification
Shares of retail companies surged on Wednesday, a day after the government notified 100% foreign direct investment (FDI) in single-brand retail.business Updated: Jan 11, 2012 21:56 IST
Shares of retail companies surged on Wednesday, a day after the government notified 100% foreign direct investment (FDI) in single-brand retail.
Koutons Retail gained 9.9% to close at Rs 20, while Kishore Biyani-led Pantaloons Retail shot up by 4.1% to Rs 153. Shopper’s Stop rose by 4.9%, Tata Group retail venture Trent Ltd advanced by 1.3% and Vishal Retail jumped by 5.0%.
“For the industry this comes as good news after a long period of time,” said Govind Shrikhande, managing director, Shoppers Stop. “Single-brand retailers such as IKEA, Louis Vuitton and others have been looking at a 100% control and this is a step in that direction.”
“On the surface it’s not a big game changer but it’s a step in the positive direction,” said an analyst with Motilal Oswal. “It’s more sentimental than notional.”