| Date: |
24-11-2011 |
| Subject: |
Retail Stocks Rise before Cabinet meet on FDI |
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The Department of Industrial Policy and Promotion (DIPP) had earlier circulated a draft Cabinet note to seek inter-ministerial views on the issue.
Shares of retail companies like Pantaloon Retail, Provogue India and Shoppers Stop are trading positive after reports stated that the Union Cabinet will take up a proposal on allowing FDI in multi-brand retail besides considering increasing the FDI limit in single brand retail, from 51% to 100%.
The FDI approval for multi-brand retail may come with riders which require local sourcing of products, according to reports.
At present, the Government allows 51% FDI in single brand retail, 100% in cash and carry (wholesale) business. FDI is not allowed in multi-brand retail currently.
The Finance Ministry has reportedly given its consent to the draft Cabinet note on opening the multi-brand retail to foreign investment.
The Department of Industrial Policy and Promotion (DIPP) had earlier circulated a draft Cabinet note to seek inter-ministerial views on the issue.
The shares of Pantaloon Retail are trading at Rs. 188, up by Rs. 9 or 5% over the previous close. It had earlier opened at the day's low of Rs. 182 and high of Rs. 192.
Provogue India shares rose by ~4% at Rs. 26 touching the day's high and day's low at Rs. 26, stating the volume of total traded quantity at 0.22 lakh shares on the BSE.
While, the stocks are trading at Rs. 363, up by Rs. 10 or ~3% as against the previous close of Rs. 352. It opened at the day's low of Rs. 355 and day's high of Rs. 366. The total traded quantity stood at 0.38 lakh shares on the BSE.
Source : indiainfoline.com
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