Retail stocks fall as AAP govt scraps FDI in multibrand retail

Tags: News
Retail stocks today came under selling pressure after the Aam Aadmi Party Government withdrew the approval given by the previous Sheila Dikshit dispensation for FDI in multibrand retail in Delhi.

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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • Government must give up majority ownership in loss making PSU banks

    After four years of braving economic slowdown and provisioning for rising non performing assets (NPAs), public sector banks are in urgent of capital.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

BK Chaturvedi

Cooperative federalism and governance

Improving relations between the states and the Centre to improve ...

Kuruvilla Pandikattu SJ

Reason drives religion, science

Both religion and science are driven by reason, claims Rama ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture