Shares of companies in the retailing sector have rallied up to 7% on reports that the most of the state government have agreed upon the proposal to allow foreign companies to invest in multibrand retail.
“Except West Bengal's Mamata Banerjee, no other state government has raised objections to the proposal to allow foreign direct investment (FDI) companies to invest in multibrand retail,” the report suggest quoting commerce and industry minister Anand Sharma.
The government currently allows 100% FDI in wholesale and single-brand retailing, may allow foreign investors to own majority stakes in domestic supermarkets and department stores after the Presidential elections on July 19, according to the report.
Among the individual stocksShoppers Stop and Pantaloon Retail (India) have soared over 6% each, while CESC, Trent, Provogue India and Brandhouse Retails are up 3-6% on the Bombay Stock Exchange.
