Stocks of retail sector soared in today's session. Among them, Pantaloon Retail, Shoppers Stop and Trent witnessed gain between 3 to 12 percent.
Retail stocks rose on the news that final cabinet note on foreign direct investment (FDI) in retail is to be issued next week. Market expect that the inter ministerial discussions on FDI for retail sector likely to end on Friday. 100% FDI in single brand retail which currently cap at 51% is likely to be approved by the Cabinet.
Investors should slowly accumulate retail stocks as government is keen to raise the cap on FDI. These companies will be directly beneficial of the policy. However, markets is in bear mode so slowly add this counter in your portfolio.
Accumulate Pantaloon at 170 range for a medium term target for 220.One can also consider Shopperstop at 355 range for a target of 440.