Retail shares rally on FDI buzz

Pantaloon Retail surges 11%

Retail sector shares such as Pantaloon Retail, Shoppers Stop and Trent have rallied up to 11% in late noon trades on hopes of foreign direct investment (FDI) in multi-brand retail.

Pantaloon Retail (India) has soared up to 11% at Rs 164 on the Bombay Stock Exchange on back of over three-fold surge in trading volumes. The stock opened at Rs 149 and has seen a combined 8.3 million shares changing hands so far on the both the exchanges.

Trent and Shoppers Stop has surged 6% each at Rs 1,115 and Rs 373 respectively, followed by Koutons Retail India (up 5%) and CESC (up 4%) on the BSE.

“Major announcements are expected today for allowing FDI in multi-brand retail of up to 49% and permitting airlines to acquire 49% share in Indian carriers,” the report suggests.

The Cabinet allowed foreign investors to own a 51% in Indian supermarkets last November, but had to keep the move in absence after protests from its ally, Mamata Banerjee-led Trinamool Congress, and some opposition parties.