Retail stocks fall as AAP govt scraps FDI in multibrand retail
Jan 14 2014 , Mumbai
Shares of Provogue (India) tanked 3.83 per cent, while Trent slide 3.10 per cent and Brandhouse Retails went down by 2.76 per cent.
Among others, Shoppers Stop fell by 1.98 per cent and Future Retail lost 1.79 per cent on the BSE.
In a major policy reversal, the Aam Aadmi Party Government yesterday withdrew the approval given by the previous Sheila Dikshit dispensation for FDI in multibrand retail in Delhi, saying allowing global retail chains like Wal-Mart and Tesco to set up shops will result in large-scale job losses.
The previous Congress government had taken a number of steps to remove bottlenecks in attracting FDI in multibrand retail. It had even announced plan to make amendments to the Agricultural Produce Marketing Committee (APMC) Act to allow direct connectivity between retailers and farmers.
Last year, the central government permitted 51 per cent FDI in the multi-brand retail trading and left its implementation on the states.
Delhi has become the first state to withdraw permission for FDI in retail sector.