Categories: Business

Defense stock surge up to 10 percent after rise in FDI limit via automatic route

Photo: AP

Defense stock surge

new Delhi. Shares of defense-related companies have gained up to 10 percent during early trade on Monday. The government has said that it will allow 74 percent FDI from the automatic route by easing FDI rules in defense manufacturing, after which it accelerated. Despite the weak market position, Hindustan Aeronautics shares rose 10 per cent in BSE, 5.53 per cent in Bharat Electronics, 5.31 per cent in BEML, 4.93 per cent in Astra Microwave Products and 4.71 per cent in Bharat Dynamics.

According to the current FDI policy, 100 percent foreign investment is allowed in the defense industry, with 49 percent investment allowed through automatic route, while government approval is required for investment beyond that. Finance Minister Nirmala Sitharaman has said that the FDI limit under the automatic route for defense sector will be increased from 49 percent to 74 percent.

This post was published on May 18, 2020 12:30 pm

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