Retail stocks gain on Tesco's investment plans

Reuters Market Eye - Shares of retailers gain after Tesco Plc said on Tuesday it had applied to buy a 50 percent stake in Trent Hypermarket Ltd, a unit of Tata Group's Trent Ltd.

Dealers say Tesco's investment in Trent is raising hopes that there will be other buyouts and deals in India's $500 billion retail sector.

Tesco, the world's third-largest retailer, which already has a franchise agreement to provide support to Trent's Star Bazaar chain, has made an application to India's Foreign Investment Promotion Board and plans to invest $110 million, an official at the Indian trade ministry said.

Trent Ltd surges 12.4 percent, Future Retail Ltd is up 4.1 percent while Shopper's Stop Ltd gains 4.1 percent.

 

(Reporting by Abhishek Vishnoi)