Retail rally halts as uncertainty hovers over political support

Posted By: Religare
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Retail rally halts as uncertainty over political support
The party for the realty giants came to a halt today morning, as the stocks pared the last two sessions' gains after the ruling party received hefty criticism from left as well as other political parties, for the decision to allow 51 per cent FDI in multi-brand and 100 per cent in single brand retail.

Reacting to the same, shares of Pantaloon Retail witnessed a slide of over 4 per cent to trade at Rs 224.15 a piece on the Bombay Stock Exchange at 09:50 AM. The stock had also hit an early low of Rs 219.10.

Besides, shares of Koutons retail also reacted in similar fashion, and was quoting at Rs 21.30 a piece, down 10.88 per cent from previous close on BSE.

Situation was no better for Shoppers Stop and Trent, which were trading down over 5 per cent and 3 per cent respectively, owing to similar reasons.

All the above mentioned stocks had witnessed a handsome rally in the previous two sessions, driven by the Cabinet's go-ahead to the FDI in multi brand retail. Market experts opine that apart from the opposition's criticism, profit-booking also led to the slide in the stocks.

According to a report, some defending state governments have threatened to keep the foreign players away from their states, which dampened the investors' sentiment.

Defending Political parties feel that the move would destroy small kirana store owners, who have been owning the major part of this segment till now.

Dion Global Solutions Ltd

Story first published: Monday, November 28, 2011, 13:31 [IST]
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