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 4.99 per cent, Walchandnagar Industries (4.78 per cent) and Dynamatic Technologies (2.3 per cent).
FDI in defence sector has been 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.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.