Shares of eateries, entertainment and retail establishments gained anywhere between 3% and 10% on Wednesday following the Union Cabinet’s approval of the Model Shop & Establishment Bill, which, among other things, allows such entities to operate 24 hours throughout the year. Future Market Networks was the biggest gainer during the session as it rallied 10% while shares of men’s fashion chain Provogue climbed 9.8%. Shares of multi-brand retail chain outlets Shoppers Stop went up by 5.2%.
Westlife Development – the owner of the master franchisee of McDonald’s restaurants – was also among the gainers as its stock surged close to 7%.
The new law provides convenience to shops, malls and other establishments to operate 24 hours a day throughout the year. According to market participants, the new law will help generate additional employment as the outlets would have the freedom to operate for longer hours.
According to the Model Shop Bill, restaurants and local markets, which are not covered under the Factories Act 1948 are covered under the Act.