McLeod Russel brews strong cuppa

McLeod Russel is up over 3% at Rs.284 and this around its current intra day high levels. Its 52-week high stands at Rs.386.95.

The stock is up in the green on news that 100% FDI will now be allowed in the tea sector and tea plantations. The caveat is here is that the foreign investor divest 26% equity to its Indian partner within five years. A second condition requires prior approval of the state government concerned in case of any change in land use in future. These new norms will be applicable to all fresh investments in the sector.