Global markets cheer FDI victory, ADRs rise

Dec 06 2012, 10:30 IST
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Parliament support for FDI in retail pushed up the prices of most American Depository Receipts (ADRs). (Reuters) Parliament support for FDI in retail pushed up the prices of most American Depository Receipts (ADRs). (Reuters)
SummaryParliament support for FDI in retail pushed up the prices of most American Depository Receipts (ADRs).

Parliament support for FDI in retail pushed up the prices of most American Depository Receipts (ADRs) as the US markets opened on Wednesday.

ICICI Bank ADR was up by 1.8 per cent, HDFC Bank ADR was up by 0.5 per cent while Sterlite ADR was trading above 3.44 per cent on Thursday at the opening of the US markets. Market experts in India are also expecting a reaction by the markets. “Markets will give a salaami (salute) tomorrow,” said Raamdeo Agarwal, joint managing director at Motilal Oswal.

While markets were largely expecting the government to get the FDI in multi-brand retail motion through in the Lok Sabha, experts say that it was still waiting for the final clearance as some event risk is always there.

Experts called it a courageous move and a big achievement that will change the retail landscape.

Experts say that while immediate reaction will be there on Thursday, the move will have a long lasting impact. “It will have a far reaching and deep impact in the long term,” said Agrawal.

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