Stocks of Pantaloon Retail, Brandhouse Retails, Koutons and Provogue ended the day with losses. Retail stocks have been in the limelight ever since FDI in multi-brand retail was cleared by the Union Cabinet. However, it seems that these stocks are likely to fall, as FDI in multi-brand retail becomes a major issue.
"In both the Houses, the CPI(M) members have given the notices and we wish to take this up for a proper discussion under rules which will entail voting," senior CPM leader Sitaram Yechury said.
"Any such decision (allowing FDI in multi-brand retail) will have to be endorsed by Parliament and the government should not go behind the cover of saying that this is an executive decision," the Economic Times quoted Yechury as saying.
Though FDI in multi-brand retail is an executive decision and does not need parliament approval, it is a first of its kind.
The ruling UPA has already countered opposition plans to demand voting on foreign direct investment (FDI) in multi-brand retail and said there was no precedent of a policy decision being challenged in the Lok Sabha.
Parliamentary Affairs Minister Kamal Nath said Lok Sabha speaker Meira Kumar would decide on the demand for voting on FDI in retail. The speaker will decide on the issue in the business advisory committee meeting with other parties on the issues to be taken up," Nath said
Clearly, it's time to stay away from retail stocks, given that the government certainly does not have a majority, considering its own allies like the DMK and the SP and the BSP and reluctant to support the government on FDI in multi-brand retail.