Opto Circuits surges on Cabinet nod for easing FDI norms for medical devices business

The stock surged 17% to Rs 26.15 on NSE on back of an over two-fold jump in trading volumes.

Opto Circuits (India) has surged 17% to Rs 26.15 on back of heavy volumes on the bourses after the Union cabinet approved liberalising foreign direct investment (FDI) policy for the medical devices sector.

The stock opened at Rs 23.90 and hit a high of Rs 26.50 on NSE. The trading volumes on the counter more than doubled with a combined 18.34 million shares representing 7.56% of total equity changed hands till 1441 hours.

This is expected to help attract more investments and boost the domestic manufacturing.

At present, the medical devices sector falls under the pharmaceutical category and is accordingly subjected to FDI limits and other conditions such as mandatory government nods, the PTI report suggests.

Opto Circuits (India) operates in the medical electronics space and manufactures optical sensors, security systems and optoelectronic equipment. The company also undertakes design of optoelectronic devices. It also manufactures a range of healthcare equipment like pulse oximeter, multi parameter monitors, pulse oximeter sensors, digital thermometers, cholesterol monitors and fluid warmers.