Defence shares surge on foreign investment notification - analysts

Reuters Market Eye - Shares in defence companies such as Bharat Electronics and Astra Micro Wave Products gain over 5.5 percent.

Pipavav Defence and Offshore Engineering Co is up 0.7 percent, while Centum Electronics rises 1.4 percent.

Foreign direct investment limit in defence at 49 pct and that of foreign portfolios at 24 percent notified - analysts.

Companies FII holding Potential hike by FIIs (percent)

Bharat Electronics 1.9 22.2

Pipavav Defence 2.3 21.7

Asta Micro 0.1 23.9

Centum Elec 0 24

Source: Edelweiss note

(abhishek.vishnoi@thomsonreuters.com / abhishek.vishnoi.thomsonreuters.com@reuters.net)