The stocks of retail companies today climbed over 11 per cent after the Government implemented its decision to allow FDI in the multi-brand retail sector.
Retail stocks gathered momentum in early trade with Pantaloon Retail shooting up by 11.61 per cent to Rs 195, while Provogue zoomed 10.78 per cent to Rs 18.70 on the BSE.
Among others, Koutons Retail was locked at the upper circuit limit of 5 per cent, while Trent surged 5.2 per cent, Shoppers Stop (4.8 per cent) and Brandhouse Retails (7.5 per cent).
Brokers said buying emerged after the Government went ahead with implementing its decisions to allow FDI in multi-brand retail.
Some of these stocks were beaten down yesterday.
Last evening, unfazed by the opposition even from its own allies, the Government went ahead with implementing its decisions to allow FDI in multi-brand retail and liberalising foreign investment in the aviation and broadcasting sectors.
Under the notification relating to FDI in multi-brand retail, multinational companies can invest up to 51 per cent to open stores in 10 States and UTs which have so far agreed to implement the Government decision.
The stock markets cheered the move and the BSE 30-stock index, Sensex, was in the green at 18,650.72 — up 301.47 or 1.64 per cent at 11.07 hrs.