Retail stocks gain on hopes for nod for FDI

Retail stocks like Pantaloon Retail, Shoppers Stop, V2 Retail and Trent are trading higher on back of news reports that the government may allow foreign direct investment (FDI) in multi-brand retail.

Markets expect that the inter-ministerial discussions on FDI for the retail sector are likely to end on Friday. 100% FDI in single brand retail, which is currently capped at 51%, is likely to be approved by the Cabinet.

Pantaloon Retail is the top gainer among the retail stocks. The stock has jumped nearly 3% to Rs 188. Shoppers Stop' is trading higher by 2.5% at Rs 358, V2 Retail and Trent have also soared 2.4% and 1.6% each respectively.

As many as 378,000 shares of Pantaloon Retail have changed hands compared to its two-week average of 330,000. Shoppers Stop also witnessed a hike in ts trading volumes as 7,409 shares changed hands compared to its two-week average of 7,304.