Shares in foreign-owned companies surge on RBI decision

Reuters Market Eye - Shares in companies owned by foreign promoters rally after the Reserve Bank of India (RBI) said on Friday it would allow non-residents to buy stocks of listed domestic firms through the foreign direct investment route.

The new rule would make it easier for foreign promoters, who were earlier able to raise their stakes only through separate processes such as open market offers, to buy shares in listed companies.

ABB India jumps 19.3 percent while Siemens gains 6.5 percent and United Spirits is up 3 percent.

(Reporting by Abhishek Vishnoi)