Business

Defence firms gain over 5% on FDI limit hike

  • PTI, Mumbai
  • |
  • Updated: Aug 07, 2014 05:19 IST

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.

 

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