Indian stock markets were staid in the last two trading hours. Majority of the sectoral indices are marginally positive with realty and metal stocks leading the pack of gainers. IT, FMCG and auto stocks were amongst the few sectors trading in the red.
All the retailing stocks are trading positive. Kouton's Retail, Shopper's Stop and Pantaloon are the major gainers. As per a leading financial daily, the government has hiked the Foreign Direct Investment (FDI) limit in single-brand retail trading from 51% to 100%. But all FDI above 51% limit will have to mandatorily source at least 30% of the value of sold goods from domestic small scale village and cottage industries. This is likely to provide a fillip to domestic industry and enable in its technical upgradation. The move will enable multinational retail chains such as Louis Vuitton, Nike, Addidas, Gucci and Toyota to fully own and control operations in India. The 100% FDI in single-brand is being viewed as a precursor to multi-brand retail opening up in the country.
Most of the mining stocks are in the green with Ashapura Minechem and Gujarat NRE Coke leading the gainers. As per a leading financial daily, Coal India will review the recently adopted mechanism of pricing coal based after three months. The new policy prices coal on gross calorific value which results in 30% to 60% higher than earlier average prices. The company will consider the impact on the topline 'company wise' and will take a view on prices after three months. This is likely to give relief to thermal power generating companies that may bear the brunt of higher fuel costs, specifically the ones that cannot pass through the higher costs of generation to the customers. Coal India stock is up by 1%.