 "Defence stocks gain on hike in FDI limit")
Shares of defense equipment and manufacturers have trading higher by up to 6% after the government decided to allow foreign direct investment in defence sector.
Bharat Electronics (up 6% at Rs 1,870), BEML and Astra Microwave Products (up 5% each at Rs 541 and Rs 131 respectively), Walchandnagar Industries (up 4% at Rs 90) and Pipavav Defence and Offshore (up 2% at Rs 46.50) are up between 2-6% on the Bombay Stock Exchange.
“In some easing of investment rules for the defence sector, the government has apparently done away with the condition of 51% equity ownership by a single Indian partner while raising the foreign investment cap to 49% from 26%”, the Business Standard report suggests.
It has also lifted an earlier three-year lock-in period for foreign investment in this sector, added report.
The move is aimed at boosting domestic industry of the country which imports up to 70% of its military hardware.
Bharat Electronics (up 6% at Rs 1,870), BEML and Astra Microwave Products (up 5% each at Rs 541 and Rs 131 respectively), Walchandnagar Industries (up 4% at Rs 90) and Pipavav Defence and Offshore (up 2% at Rs 46.50) are up between 2-6% on the Bombay Stock Exchange.
“In some easing of investment rules for the defence sector, the government has apparently done away with the condition of 51% equity ownership by a single Indian partner while raising the foreign investment cap to 49% from 26%”, the Business Standard report suggests.
It has also lifted an earlier three-year lock-in period for foreign investment in this sector, added report.
The move is aimed at boosting domestic industry of the country which imports up to 70% of its military hardware.
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