Retail shares up on expectation of FDI in multi-brand retail

Shares of retailers were up in early trades Thursday on expectation that the government may announce foreign direct investment in multi-brand and increase the ceiling on single-brand retail.

The Union Cabinet on Thursday will discuss allowing 51% foreign direct investment (FDI) in multi-brand retail and 100% in single-brand retail, a government spokeswoman said on Wednesday.

India currently allows 51% foreign investment in single-brand retailers and 100% for wholesale operations, a policy that the world's top retailer Wal-Mart and Carrefour among others have lobbied to change for years.

At 0934 hours, Pantaloon Retail was up 6% at Rs 189, Trent was up 1.9% at Rs 984, Shoppers Stop was up 2.5% at Rs 361 on the Bombay Stock Exchange.