Retail Stocks Gain 8-13% on FDI Approval by Cabinet.

Indian retailers finally get a chance to rejoice as the Cabinet has cleared the bill to increase foreign direct investment to 51% in multi-brand retail and 100% in single brand.

The decision will be cheered by global retail giants such as Wal-Mart that have long been eyeing India's lucrative retail sector which is mainly populated by small ‘mom & pop’ shops. Currently, organized retail, or large chains, makes up less than 10% of the market.

An ASSOCHAM report states that India’s overall retail sector is expected to rise to USD 833 billion by 2013 and to USD 1.3 trillion by 2018, at a compounded annual growth rate of 10% driven by the emergence of shopping centres and malls, and a middle class of close to 300 million people that is growing at nearly 2% a year.

Also Read - Cabinet clears FDI in multi-brand retail

After more than six years in the workshop, Ajay Dua, former secretary of the Department of Industrial Policy and Promotion tells CNBC-TV18 that he is glad to finally see FDI in retail come through. “This will not only help us get more investments, but help agriculture, manufacturing and the Indian consumer,” he said in an exclusive interview.

The government's new policy to increase foreign direct investment (FDI) in Indian retail sector will attract inflows of about USD 8-10 million in the next five to 10 years believes, retail king Kishore Biyani.

Biyani, founder and group chief executive officer of Future Group told CNBC-TV18 that this move would promote small industries and consumers will get more choices and better prices. “It’s a win-win situation for everyone," he said.

However, Biyani feels, some more fine tuning is required to the policy, but added, that condition imposed on the food side of the business seems doable.

Check out how retail stocks have reacted today -

Pantaloon Retail touched an intraday high of Rs 230.50 and an intraday low of Rs 206.25. At 09:20 hrs the share was quoting at Rs 221.30, up Rs 20.70, or 10.32%. It was trading with volumes of 373,174 shares.

Vishal Retail touched an intraday high of Rs 21.50 and an intraday low of Rs 19.80. At 09:20 hrs the share was quoting at Rs 20.60, up Rs 1.75, or 9.28%. It was trading with volumes of 112,608 shares.

CESC touched an intraday high of Rs 294.95 and an intraday low of Rs 264. At 09:19 hrs the share was quoting at Rs 287.00, up Rs 33.40, or 13.17%. It was trading with volumes of 27,468 shares.

Shoppers Stop touched an intraday high of Rs 415.00 and an intraday low of Rs 385.60. At 09:19 hrs the share was quoting at Rs 407.15, up Rs 34.90, or 9.38%. It was trading with volumes of 48,187 shares.

Provogue (India) touched an intraday high of Rs 30.80 and an intraday low of Rs 27.85. At 09:19 hrs the share was quoting at Rs 29.00, up Rs 2.20, or 8.21%. It was trading with volumes of 76,045 shares.

Koutons Retail India touched an intraday high of Rs 24.80 and an intraday low of Rs 22.50. At 09:20 hrs the share was quoting at Rs 23.50, up Rs 1.80, or 8.29%. It was trading with volumes of 131,996 shares.

Source : moneycontrol.com