Bharat Electronics, which had closed yesterday at Rs.113.10, went on to hit a new 52-week high at Rs.122.50. Its 10% UC for the day is not too far at Rs.124.40.
The stock is up after the Govt yesterday issued a notification regarding changes in the Foreign Exchange Management Act (FEMA) permitting foreign direct investment (FDI) in defence production up to 74% under the automatic route.
In Sept, the Govt had permitted FDI beyond 74% via the govt route and now that has been changed to the automatic route.
BEL specialises in manufacturing defence electronics and is one of the biggest gainers of the Govt’s increase in defence expenditure.