Retail stocks plunge over uncertainty in FDI

By PTI Dec 05 2011 , Mumbai

Led by Pantaloon Retail (India), shares of retail companies fell by up to 11

per cent on the bourses today after the government put on hold its decision to permit FDI in the multi-brand retail sector.

Shares of retail companies like Pantaloon Retail, Trent Ltd, Vishal Retail, Koutons Retail, Shopper's Stop and Provogue fell by as much as 11 per cent.

Overall weakness in the stock market added to the downtrend in retail stocks.

The benchmark index Sensex was trading 51.39 points lower at 1247 hours.

While Kishore Biyani-led Future group's Pantaloon Retail (India) Ltd plunged by 10.7 per cent to a low of Rs 191 on the BSE, shares of the Tata Group's retail venture Trent Ltd fell by 4.38 per cent to Rs 952.05.

In a similar fashion, Koutons Retail lost 8.89 per cent, Provogue (India) tumbled by 7.56 per cent, Shopper's Stop tanked by 10.85 per cent and Vishal Retail shed 7.69 per cent.

These stocks had recorded smart gains on November 25 a day after Cabinet decided to allow 51 per cent FDI (Foreign Direct Investment) in the multi-brand or supermarket retail business and do away with the present 51 per cent cap on FDI in the single-brand retail business.

However, the decision was met with strong resistance from the Opposition, as well as UPA allies Trinamool Congress and DMK.

The controversial decision has been put on hold as Parliament has been paralysed since the beginning of the Winter Session on November 22

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