Markets may tweak sharply ahead of FDI meet

Foreign Direct Investments will further get a boost, if the outcome of the FDI meet comes as a green signal. According to reports, Prime Minister's office commonly abbreviated as (PMO) has called for a meeting to discuss the further road map of FDI. Prime Minister Narendra Modi will chair the meet, with officials from Commerce and Industry, Finance and Home Affairs likely to participate.

The discussion will be on, to allow 49 per cent in Pharma through automatic route. Department of Economic Affairs has proposed the plan. 100 per cent FDI in aviation is the talk of the street. On the news the share prices of aviation stocks have surged.

On the news, the shares of Indigo, Jet Airways, Spice Jet have surged. The scrip of Indigo has surged by 1.34 per cent, and the shares of Jet Airways and Spice Jet have surged 2.37 and 2.94 per cent respectively.
Pharma stocks have also gained. Marksans Pharma, Sharon Bio Medicine, Bliss GVS Pharma have gained as much as 3.15, 3.47, 3.09 per cent, respectively.

A strong FDI is necessary for the economy, as a good Foreign Direct Investment will reduce the stress on Balance of Payment and will strengthen the rupee against other currencies. In 2015 -16, FDI has touched an all-time high of USD 40 billion.  

As at 2.25 pm, June 20, GoI has also approved 74 per cent FDI in Brownfield Pharma. Government has also approved 100 per cent FDI in Defence sector, out of which 49 per cent will be through automatic route; 100 per cent in Broadcasting. 49 per cent FDI is also approved in Air Transported Services through automated route.