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Jan. 6 (Bloomberg) -- Pantaloon Retail India Ltd. and Shoppers Stop Ltd., the nation’s biggest retailers, gained the most in six weeks after an official said the government will this month conclude talks with stakeholders on allowing foreign investment in multibrand retail.
“The government is in talks with farmers and traders over the issue of FDI in multibrand retail,” P.K. Chaudhery, secretary in the Department of Industrial Policy and Promotion, told reporters in New Delhi today. “Consultations with these stakeholders are likely to be completed by the month end.”
India on Dec. 7 put on hold a decision to allow companies such as Wal-Mart Stores Inc. and Tesco Plc to own as much as 51 percent of retailers selling more than one brand. The move followed political protests, and sent the benchmark stock index to its biggest three-day drop since July 2009.
Pantaloon, the nation’s largest retailer, surged 6.6 percent to 141.45 rupees at the close of trading in Mumbai today. Shoppers Stop gained 5.6 percent to 278.25 rupees. The BSE India Sensitive Index, or Sensex, rose 0.1 percent.
Chaudhery said India will “issue a notification soon” to permit 100 percent foreign direct investment in single brand retail.
A notification involves publishing a rule in the Gazette of India, the official record of government laws.
Pantaloon Price Graph: PF IN Equity GP D <GO> Stories on India retail industry: TNI INDIA RET <GO> Top India news: TOP INDIA <GO> Top Consumer news: TOP CONS <GO>
--Editors: Cherian Thomas, Arijit Ghosh