Defence shares in focus; Bharat Electronics surges 8%, hits 52-week high

BEML, Bharat Dynamics and Hindustan Aeronautics were up in the range of 3% to 5% the BSE

Shares of defence sector companies were in focus on Wednesday as they surged up to 8 per cent on the BSE in the early morning trade on report that the Union government on Tuesday issued another notification regarding changes in the Foreign Exchange Management Act (FEMA) permitting foreign direct investment (FDI) in defence production up to 74 per cent under the automatic route.

As per the new policy, the increased FDI limit can go beyond 74 percent wherever it is likely to result in access to modern technology or for other reasons that should be recorded. This increased limit will be