Retail stocks up following IKEA clearance

IKEA is investing Rs 10,500 cr in the country

Stocks of listed retail companies such as Pantaloon, Shopper's Stop and Trent were up in morning trade today on the Bombay Stock Exchange (BSE) following Foreign Investment Promotion Board (FIPB) clearance received by Swedish major IKEA for its Rs 10,500 crore investment in the country. This is the largest investment proposal in the single brand retail category so far.

Pantaloon was up the most by nearly 13% to Rs 273.85 on the BSE. Analysts say that the rally seen in the Pantaloon stock was also because the Reserve Bank of India had eased restrictions on the purchase of shares in the company by foreign institutional investors, non-resident Indians and persons of Indian origin.

Shopper's Stop, in contrast, was up nearly 7.35% to  Rs 457.70 on BSE, while Trent was up 0.36% to Rs 1,190 a share.

Ikea, a Euro 25-billion company has now been allowed to set up furniture stores in India, along with the restaurants and cafes that it had proposed, in line with its international concept. It can also bring in all the product categories that it wants to, though FIPB on November 20 had struck off more than 50% of IKEA’s wish list, including restaurants and cafes, while giving it a conditional nod.