Mumbai: Retail stocks, including Pantaloon Retail India and Provogue India Monday tumbled as much as 8.3 percent following reports that Samajwadi Party, Left parties and JD(S) have asked the government not to allow foreign direct investment (FDI) in multi-brand retail.
Shares of Provogue India dropped 8.31 percent to Rs 17.10, while Pantaloon Retail tumbled 6.42 percent to Rs 177.80 on the BSE.
Among others, Shoppers Stop shed 5 percent, Koutons Retail (5.79 percent), Brandhouse Retails (5.93 percent), and Tata group firm Trent (3.14 percent).
SP chief Mulayam Singh Yadav, CPI(M) General Secretary Prakash Karat, CPI General Secretary S Sudhakar Reddy, Forward Bloc's Debabrata Biswas, JD-S' Danish Ali and RSP's Abani Roy have written a joint letter to Prime Minister Manmohan Singh, saying parties across the spectrum are opposed to this move.
Arguing that the sector is the second largest employer in the country after agriculture, the letter said reports were appearing that the government was going to revive the decision to allow FDI in multi-brand retail trade, which was suspended due to opposition from various parties, including allies.
The government had allowed FDI in single brand retailing but had suspended the decision to allow such investment in multi-brand retailing due to opposition from several parties, including UPA allies like Trinamool Congress.
First Published: Monday, July 23, 2012, 13:26