New Delhi: Retail stocks in India opened on a strong note Friday on the back of the decision the previous evening to open up the sector further with up to 51 percent foreign equity in multi-brand format and 100 percent in single brand stores.
Within minutes of opening bell at the Bombay Stock Exchange, the shares of Pantaloon Retail was trading at Rs.222.55 with a gain of as much as 10.95 percent, while that of Vishal Retail was quoting at Rs.20.75 with a gain of 10.08 percent.
Analysts said the move to allow foreign equity will bring much cheer to Indian firms in the sector, which are heavily in debt, preventing any meaningful inflow of capital for expansion.
India’s federal cabinet had Thursday allowed global chains like Wal-Mart, Carrefour and 7-Eleven to bring up to 51 percent foreign equity to open multi-brand retail stores and allowed 100-percent equity in single brand format.
Shoppers Stop stocks were also up 7.74 percent at Rs.401.05, and those of Koutons were higher by 8.76 percent at Rs.23.60.
Shares of Provogue, Store One Retail, Archies and Cantabil were also trading higher over the previous day’s close, though the Fame India stock was down.