Retail, aviation, cable stocks surge on FDI move
Mumbai, Sept 17 (PTI) Shares of retail, aviation and cable companies today soared by up to 33 per cent following the government decision to open these sectors to overseas investors.
From the retail pack, Future Group firm Pantaloon Retail surged 32.61 per cent to Rs 209, while Provogue India gained 17.83 per cent to Rs 18.90 on the BSE.
Among others, Brandhouse Retails soared 18.58 per cent, Koutons Retail India gained 5 per cent to touch its upper circuit limit of Rs 7.15, Tata Group retail firm Trent (15.87 per cent) and Shoppers Stop (15.19 per cent).
Aviations scrips, too, saw heavy buying, where Kingfisher Airlines shot-up by 19.98 per cent to touch its highest trading permissible limit for the day at Rs 12.97.
Jet Airways shares rose by 8.21 per cent and Spicejet jumped 19.71 per cent to Rs 41.30.
"The FDI announcement is a very positive news for the entire market and stocks from retail, aviation and cable companies are moving up as the FDI demands were finally met, said SMC Global Securities'' Jagannadham Thunuguntla.
Antique research in a report said: "We believe this as win�win move for the players as domestic players need to strengthen balance-sheet and foreign airlines get entry in one of high growth potential market with significant share of foreign travellers."
Late on Friday evening, the government allowed 51 per cent foreign investment in multi-brand retail, 49 per cent investment by foreign airlines in aviation and raised the FDI cap in broadcasting from 49 per cent to 74 per cent.
Den Networks was trading higher by 2.73 per cent, while Dish TV rose by 2.87 per cent.
Analysts also attributed rally in these stocks to a robust stock market, where the BSE benchmark Sensex was trading at 18,575.92, up 111.65 points at 1146 hrs.
The water level of the Yamuna river has crossed the danger mark in Delhi, increasing the threat of flood. Locals are gearing to face the crisis as the rains are at least twice as heavy as usual in northwest and central parts of India.
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