Defence cos shares slide amid FDI hike

Tags: Companies
Shares of defence equipment makers fell sharply by as much as 10 per cent today amid Finance Minister Arun Jaitley raising foreign direct investment in the sector to 49 per cent.

Bharat Electronics shares tanked 9.71 per cent, while Astra Microwave Products was down 8.45 per cent on the BSE.

Among others, BEML fell by 4.99 per cent, Walchandnagar Industries (4.78 per cent) and Dynamatic Technologies (2.3 per cent).

FDI in defence sector raised to 49 per cent, Jaitley said while presenting the Budget for 2014-15.

As per the current FDI policy, up to 26 per cent FDI is permissible in the defence sector subject to licensing through government route.

Meanwhile, selling was also seen in the broader market with the BSE benchmark Sensex trading lower by 280.40 points to 25,164.41 during noon trade.

EDITORIAL OF THE DAY

  • The Sebi draft proposing changes in rating agencies has come at right time

    The Securities and Exchange Board of India (Sebi) has recently circulated draft rules for changes in working practices followed by rating agencies.

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Roopen Roy

Hi-touch is always better than hi-tech

Robotics and machine learning have been sending chills down the ...

Zehra Naqvi

The fountain of eternal youth

The pursuit of eternal youth is a multi-billion dollar industry ...

Shona Adhikari

Where Bhupen Khakhar rubs shoulders with Georgia O'Keeffe

The next India Art Fair (IAF) is scheduled to take ...