The Upper House will now debate and vote on FDI over the next two days starting today. The government is in a minority in the Upper House and will need the active support of the SP and the BSP to scrape through.
The government had opened its doors to foreign retailers in September as part of a package of measures to stave off a looming credit rating downgrade, cut a swelling fiscal deficit and revive the country's investment climate.
"The biggest impact will be on consumers because competition will bring prices down... it’s a 100 per cent win-win for consumers," BS Nagesh, founder of TRRAIN told NDTV.
Shares in big retail chains saw continued buying interest on Thursday. Shoppers Stop jumped over 4 per cent to Rs 483.45 on the BSE at 09.25 a.m.
Pantaloon Retail shares traded 1.3 per cent higher at Rs 241 while Trent, promoted by the Tata group, gained over 1 per cent to Rs 1,286.25.
"Everybody wanted clarity in terms of implementation of policy... Now that the rules are clear... India is a large market and the excitement to invest in India continues to be there," Rakesh Biyani, joint managing director of Pantaloon Retail said. Pantaloon is among the biggest retail chains in India.
All these three stocks are trading near their 52-week highs.