On January 10, 2012, government lifted the restrictions from 10 per cent FDI in single-brand retail, thus again raising hopes that multi-brand doors might also get unlocked soon.
Shares of Koutons Retail gained as much as 18.6 per cent during the early morning trade on BSE, while later on at 10:45 AM, it quoted at Rs 20.36, up 12.30 per cent from previous close.
In the similar fashion, shares of Shoppers Stop gained as much as 12.8 per cent during the early morning trade, while later on quoted at Rs 316.80 a piece, up 9.47 per cent from previous close.
In December 2011, the government had held the decision to open India's USD 450 billion multi-brand retail sector to foreign firms, thus stepping back from one of its boldest reforms in years in the face of the political kick-back.
Though the yesterday's decision did not come as a surprise for markets, but domestic retail stocks clearly cheered the move, which was pushed through by a government that has been fighting to clear off perceptions of policy paralysis, at a time when economic growth is slowing and inflation remains above 9 per cent.
Dion Global Solutions Ltd