Saturday, December 06, 2014
Defence stocks rally upto 10% as DIPP clears industrial licences
Mumbai, 5 Dec, 2014: Shares of defence related companies are up for second straight session after the Department of Industrial Policy and Promotion (DIPP) licensing committee cleared several industrial license proposals stuck since 2012.
According to reports, of the 34 licences considered by DIPP, seven came from Pipavav Defence; two were from Punj Lloyd Aviation and one proposal each by Tata Motors and Piramal Systems and Technologies.
It has also recommended licenses for 10 defence and explosives manufacturing firms. These include Bharti Shipyard, Aveo Helitronics, Spectrum Infotech, Dusoft Fabrication, Premier Explosives and Shiva Explosives India.
Defence stocks have been rallying for the past few sessions on the back of positive newsflow. The government recently notified FDI limit in the sector to 49 per cent from 26 per cent.
The government also revoked ban on foreign institutional investors' (FIIs) in the sector. The RBI has issued a notification allowing FIIs to invest up to 24 per cent of the equity capital of the defence companies.
Courtesy: The Economic Times