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Retail, aviation, cable stocks surge 33% on FDI

Shares of retail, aviation and cable companies soared by up to 33 percent following the government decision to open these sectors to overseas investors.

From the retail pack, Future Group firm Pantaloon Retail surged 32.61 percent to Rs 209, while Provogue India gained 17.83 percent to Rs 18.90 on the BSE. Among others, Brandhouse Retails soared 18.58 percent, Koutons Retail India gained 5 percent to touch its upper circuit limit of Rs 7.15, Tata Group retail firm Trent (15.87 percent) and Shoppers Stop (15.19 percent).

Aviations scrips, too, saw heavy buying, where Kingfisher Airlines shot-up by 19.98 percent to touch its highest trading permissible limit for the day at Rs 12.97. Jet Airways shares rose by 8.21 percent and Spicejet jumped 19.71 percent to Rs 41.30.

Reuters

"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 percent foreign investment in multi-brand retail, 49 percent investment by foreign airlines in aviation and raised the FDI cap in broadcasting from 49 percent to 74 percent.

Den Networks was trading higher by 2.73 percent, while Dish TV rose by 2.87 percent. 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.

PTI

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