Defence firms gain over 5% on FDI limit hike
Shares of defence equipment makersgained more than 5% on Thursday after the government increased FDI investment limit in the sector to 49%.
Astra Microwave Products' scrip surged 5.13%, while BEML climbed 4.57% on the BSE.
Shares of Bharat Electronics also rose by 4.56%.
Pipavav Defence and Offshore Engineering Company gained 2.57% in the morning, but later it was trading with a loss of 0.38%.
Moving ahead with the economic reforms, the Cabinet last night cleared the long-delayed proposal for raising FDI limit in defence to 49%
The decision taken at the Cabinet meeting headed by Prime Minister Narendra Modi came barely two weeks after the one to raise the FDI cap in insurance sector from 26% to 49%.
FDI ceiling in the sensitive defence sector has been hiked to 49% from current 26%, with the condition that the control in joint venture manufacturing of defence equipment will remain in Indian hands.