Indian stocks rose for a third day, reversing earlier losses, as the leader of the fourth largest party in the parliament said she would support Prime Minister Manmohan Singh’s plan to allow foreign investment in retail.
Shoppers Stop Ltd. rose to the highest in more than a year, leading gains among retailers after India’s lower house of parliament voted to endorse a government decision to allow foreign investment in supermarkets.
Billionaire Kumar Mangalam Birla’s Aditya Birla Nuvo Ltd. will buy a controlling stake in an entity to be created by splitting store operator Pantaloon Retail India Ltd. to widen the reach of its apparel brands.
India’s opening up of foreign investment in retail may see Wal-Mart Stores Inc. be the first to tap the $505 billion market as Carrefour SA and Tesco Plc focus on battling falling profits and consumer spending.
Offshore investors will buy more Indian equities after the nation opened its retail and aviation industries to foreigners, accelerating the highest fund inflows in Asia this year, Bajaj Allianz Life Insurance Co. said.
India’s Future Group, including Pantaloon Retail India Ltd., plans to wipe out its 78 billion- rupee ($1.6 billion) debt by March 2013, the Economic Times newspaper reported, citing Chairman Kishore Biyani.
India’s Bombay Stock Exchange’s Sensitive Index, or Sensex , fell 454.12, or 2.3 percent, to 19,242.36 at the 3:30 p.m. close in Mumbai, its steepest slump in six months. Shares of the following companies had unusual moves trading and stock symbols are in parentheses.