Pantaloon Retail India rose to the highest in more than a year on Thursday, leading gains among retailers after the Lok Sabha voted to endorse a government decision to allow foreign direct investment (FDI) in retailing.
Pantaloon, the country’s largest retailer, gained as much as 8.5 per cent to Rs 257.80, headed for the highest close since September 2011, before closing at Rs 239.15. Shoppers Stop climbed as much as 6.9 per cent, while Trent added as much as 4.2 per cent.
Yesterday’s parliamentary vote backs a decision by the central government in September to allow foreign retailers such as Walmart Stores and Tesco to own as much as 51 per cent of stores selling more than a single brand. Indian retail companies stand to gain from the government’s decision, as it would encourage partnerships with international businesses, and may bring in funding and technology.
Two hundred and fifty-three members of the 545-member lower house yesterday supported the government’s plan, while 218 members voted against the decision. Two regional parties that oppose the move chose to walk out of the session, rather than vote with ideological rivals.
