Retail, aviation, cable stocks surge on FDI move

The government's decision to allow foreign direct investment (FDI) in retail and aviation helped shares of companies belonging to the sectors surge on Monday.

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).

"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.

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.

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.

The BSE Sensex was trading 132.28 points higher in afternoon trade at 18,596.55.

With inputs from PTI