The Hindu Business Line : Leather stocks shine on FDI hopes

LEATHER stocks on Thursday saw a smart upward movement backed by increase in traded quantity. According to dealers and brokers, today's announcement by the Government on reducing FDI barriers in the construction sector renewed expectations that a similar move may be taken up shortly for the retail sector too.

Mr Rajesh Agarwal of CD Equisearch said the leather story largely had always been linked to the domestic shoe business, which traditionally relied on retail chains for marketing. "Bata, the shoe major had long ago set the trend in the country. Now the new local players like Mirza Tanners or Lakhani India or a handful of foreign players are also trying to follow the same footsteps. Opening of FDI in the retail sector surely would attract overseas entrants to the Indian leather item or shoe market. Obviously, the existing players would have a head start over them or their retail infrastructure may attract fresh investment and expansion," he added.

Mr Ritesh Nair of Anagram Stockbroking said that already the market buzz was that Italian major Lotto was eyeing to leverage Bata's countrywide retail network through distribution arrangements.

Mr Ajay Jaiswal of Lohia Securities echoing the same feeling said that market was also expecting relief from the Budget on the leather exports front.

Mr Nikhil Thacker of Ashit C Mehta Market Intermediates said the expectation on the retail front apart, the sector has been showing signs of improvement in the domestic and exports front.

Among the sector stocks, Bata went up by around 12 per cent to close at Rs 84.45. The counter also attracted a block deal struck at Rs 90.50 involving 1.11 lakh shares.

Stocks such as Liberty Shoes, Mirza Tanners and Lakhani India moved up by 8.83 per cent, 4.52 per cent and 4.53 per cent respectively. Crew Bos and Bhartiya International stocks also were among the gainers' list.

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