Retail shares plunge as TMC pulls out of UPA

Pantaloon Retail plunges 6%

Retail shares have plunged in trades today after Mamata Banerjee, head of Trinamool Congress withdrew support from the UPA government following the Cabinet Committee on Political Affairs (CCPA) approval for 51% foreign direct investment in multi-brand retail.

Retail stocks such as Provogue (India), Pantaloon Retail, V2 Retail, Brandhouse Retail, Trent and Shoppers Stop are trading weaker by 3-6.3% each.

Provogue (India) is the top loser of the lot. The stocks has tanked 6.3% in the opening deals to Rs 16.55. As many as 44,000 share have changed hands on the Bombay Stock Exchange (BSE) in the opening deals compared to 2,91,000 shares that were traded daily in the past two-weeks.

Pantaloon Retail has also plunged 6.2% to Rs 168.90. A total of 6,31,000 shares have already changed hands in the opening deals.

The biggest ally in Prime Minister Manmohan Singh's government pulled out of the ruling coalition on Tuesday after she opposed the government's move to approve 51% FDI in multi-brand retail and diesel price hike.

Shares of companies engaged in this sector rallied on Monday after the cabinet approved the foreign direct investment (FDI) in multi-brand retail.