FDI in retail and its effect on stock market

POSTED BY vj-manutdfan ON November 29, 2011 10:08 am COMMENTS (3)

Hi guys,
Indian govt has decided to allow FDI in multi-brand retail upto 51 percent.This means there will be lots of opportunities for logistics and supply chain management sector.

query1:under this current scenario pls suggest some good company in logistics and supply chain management sector which is listed in stock market.I think the value of the companies stock in these sectors will only grow bcoz of this decision by govt

query2:i dont fully understand the term FDI in retail,bcoz there are already many foreign companies like dominos and pizza hut set up in india.does this mean food resturant and hotels are exempt from this rule.pls explain this rule

3 replies on this article “FDI in retail and its effect on stock market”

  1. Dear Vj-manutdfan, the JV stands for Joint venture like ICICI Bank of India & Prudential Life insurance co. of UK is running a JV in India named as ICICI Prudential Life Insurance co.

    Thanks

    Ashal

  2. Dear Vj-manutdfan, For simplicity of understanding – Retail here means the Big Bazar, reliance mart, Shoppers Stop, Star Bazar………. The 51% FDI ‘ll come either in these established players or there ‘ll be new JVs for the same.

    Going by the current trends, I’m not very optimistic for FDI in retail with all the terms & conditions put in I doubt any serious player ‘ll come to India. As on date only 53 cities qualifies for these FDI retail malls out of which nearly 50-60% cities are falling in the states who are opposing the opening up of retail to FDI.

    My take – let the dust settles. Do not be over optimistic.

    Thanks

    Ashal

    1. vj-manutdfan says:

      Thanks for the answer.but i didnt get what jv is.can u pls explain that

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