India's defence firms gain on FDI limit hike

Written by Reuters | Mumbai | Updated: Aug 7 2014, 15:48pm hrs
Shares in Indian defence equipment makers gain after the government increased the FDI investment limit in the defence sector to 49 percent.

Astra Micro Wave Products Ltd gains 2.7 percent, Bharat Electronics Ltd advances 2.3 percent and BEML Ltd adds 3.9 percent.

Some analysts say the government should have raised the limit to 74 percent to give foreign firms actual control.

"India's interests are best served by having the best of global players present in India with nearly 100 percent Indian staff," says KPMG in an email.