The BSE Capital Goods index surged nearly 8 per cent intraday to 14,310.70.
Capital goods-related stocks surged on Thursday after the government approved the country’s first-ever policy for the capital goods sector and said the thrust on demand creation, technology depth and exports will help address the challenges faced by the sector.
Cheering the announcement, the BSE Capital Goods index surged nearly 8 per cent intraday to 14,310.70.
At 2.09 pm, Larsen & Toubro was trading 12.48 per cent up at Rs 1,452.40. Other capital goods majors such as Alstom T&D, BHEL, AIA Engineering and Siemens were up 2.41 per cent, 2.40 per cent and 2.32 per cent, respectively.
The government gave its nod to India’s first-ever policy on capital goods that intends to make the country a world-class hub and looks to create over 21 million additional jobs by 2025. The decision was taken at a meeting of the Cabinet meetingh chaired by Prime Minister Narendra Modi.
To create an ecosystem for globally-competitive capital goods sector, the policy bats for devising a long-term, stable and rationalised tax and duty structure.
It also advocates adoption of a uniform Goods and Services Tax (GST) regime ensuring effective GST rate across all capital goods sub-sectors with a view to ensuring a level-playing field.
(With inputs from PTI)