Space Stocks Gain As Cabinet Approves Amendment In FDI Policy

Space sector stocks rallied on Thursday after the union cabinet approved the amendment in the FDI policy which will liberalise provisions.

Satellites sub-sector is now divided into three different activities, with defined limits for foreign investment in each such sector, according to a statement by the Ministry of Commerce and Industry.

The move would prescribe liberalised entry route and provide clarity for FDI in satellites, launch vehicles and associated systems or subsystems among others, it said.

"The FDI policy reform will enhance Ease of Doing Business in the country, leading to greater FDI inflows and thereby contributing to growth of investment, income and employment," it said.

Shares of MTAR Technologies Ltd. rose as much as 8.42% early in trade and were trading 5.95% higher at 10:25 a.m.

This was followed by gains in stocks of Avental Ltd., and Paras Defence and Space Technologies Ltd., both of which were up 1.8%.

Bharat Heavy Electricals Ltd. and Walchandnagar Industries Ltd. rose over 1% as of 10:25 a.m.