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Shares of retail firms surged higher on the bourses this morning, amid reports that the Government might consider allowing 51 per cent Foreign Direct Investment (FDI) in multi-brand retail business.
The Union Cabinet is expected to meet later today to consider grant of approval to 51 per cent FDI in multi-brand retail business, a move that would allow global giants like Walmart, Tesco and Carrefour to enter the country.
Shares of Future Group’s Pantaloon Retail India surged 7.44 per cent to touch an early high of Rs 192, while Shoppers Stop jumped 4.05 per cent to Rs 366.90 on the BSE.
Other listed retailers also followed a similar trend as Trent climbed 1.96 per cent to Rs 985, while Koutons Retail was up 12.78 per cent and witnessed a high of Rs 22.50 in the morning trade.
The Cabinet is also likely to consider increasing the FDI ceiling to 100 per cent from 51 per cent in the single-brand retail business.
However, the Opposition parties have expressed concern that allowing majors global retailers would lead to unemployment among the unorganised sector.
The Government had opened the single-brand retail for FDI way back in 2006 and ever since 60 foreign players have entered the country in joint venture with local firms, but multi-brand retail has remain so far closed for foreign firms.
Several global retailers are waiting in the wings to enter India’s multi-brand retail segment.
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