Retail stocks surge up to 10% as Cabinet clears model law

MUMBAI: Shares of companies engaged in retail and entertainment sector rose sharply by up to 10 per cent today after a model law that allows shops, malls and cinema halls, among other establishments, to run 24x7 throughout the year received Cabinet assent.

Departmental store operators -- Future Market Networks and Store One Retail jumped 10 per cent and 9.97 per cent, respectively.

Provogue (India) soared 9.83 per cent, Future Enterprises climbed 5.45 per cent, Shoppers Stop surged 5.19 per cent, V2 Retail (4.96 per cent) and Trent (1.13 per cent) on BSE.

Shares of INOX Leisure surged 7.15 per cent and PVR went up by 3.04 per cent.

The law covers establishments employing 10 or more workers except manufacturing units and will provide freedom to operate 365 days with flexibility on timing to open and close.

"The Model Shops and Establishment (Regulation of Employment and Condition of Services) Bill 2016 has been cleared by the Cabinet," a source said.

The model law will not require Parliament's approval.

It will help in generating additional employment as shops and establishments will have freedom to operate for longer hours round the year, thus requiring more manpower.