Defence stocks in limelight; zoom up to 10%


New Delhi: Shares of firms associated to the defence sector zoomed up to 10 per cent in early commerce on Monday after the federal government stated it would loosen up overseas direct funding norms in defence manufacturing by permitting 74 per cent FDI underneath the automated route.

Bucking the general weak broader market development, shares of Hindustan Aeronautics jumped 10 per cent, Bharat Electronics rose 5.53 per cent, BEML superior 5.31 per cent, Astra Microwave Products surged 4.93 per cent and Bharat Dynamics was buying and selling up 4.71 per cent on the BSE.

The authorities on Saturday stated it would loosen up overseas direct funding norms in defence manufacturing by permitting 74 per cent FDI underneath the automated route with a view to attracting abroad gamers in the sector.

As per the present FDI coverage, 100 per cent abroad investments are permitted in the defence business — 49 per cent underneath the automated route, whereas past that authorities approval is required.

Finance Minister Nirmala Sitharaman stated the FDI restrict for the sector underneath computerized route might be raised from 49 per cent to 74 per cent.

“It will have security clearance and everything else as always,” she stated whereas asserting the fourth tranche of the Rs 20 lakh crore stimulus package deal for the coronavirus-hit financial system.

Meanwhile, the BSE 30-share index was buying and selling 775.78 factors or 2.49 per cent decrease at 30,321.95 in early commerce.

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