Retail stocks jump on hopes of FDI in multi-brand retail

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Retail stocks jump on hopes of FDI in multi-brand retail
Trent: Quotes, News
BSE 249.70BSE Quote4.05 (1.62%)
NSE 249.85NSE Quote4 (1.60%)
Shoppers Stop: Quotes, News
BSE 327.90BSE Quote11.8 (3.60%)
NSE 329.95NSE Quote13.85 (4.20%)
Shares of retail companies jumped sharply today, following reports that the government would consider FDI in multi-brand retail after the presidential elections.

Shares of Heritage Foods jumped 7%, while Pantaloon Retail gained more than 4.3%, Trent gained 9.38%, Shopper's Stop jumped 9.36% and Provogue gained 7%.

It maybe recalled that the cabinet had earlier approved FDI in multi-brand retail, but had to shelve it after fierce opposition from allies, particularly West Bengal Chief Minister, Mamata Banerjee.

FDI in multi-brand retail has been criticised on the grounds that it would lead to lakhs of small shopkeepers becoming jobless.

However, many believe that FDI in multi-brand retail would create more jobs, reduce prices and also help curb wastage as there would be fresh foreign investment in chilled freezer technology which could prevent a lot of wastage.

Read more about: multibrand retail
Story first published: Thursday, July 5, 2012, 10:57 [IST]
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