Mumbai : Pharma stocks rose sharply by up to 10.4 per cent after the government relaxed FDI norms for the sector.
Shares of Bliss GVS Pharma zoomed 10.44 per cent, Nectar Lifesciences soared 7.4 per cent and Sharon Bio Medicine climbed 6.18 per cent on BSE.
The scrip of Fortis Healthcare rose by 1.86 per cent, Dr Reddys Lab (1.75 per cent) and Sun Pharma Advanced Research Company (1.74 per cent).
Government launched a second wave of FDI reforms allowing 100 per cent inflows in civil aviation and food processing sectors while easing norms in defence and pharmaceuticals.
For the pharmaceuticals sector, the government relaxed the norms and permitted FDI up to 74 per cent through automatic route in brownfield projects and approval route beyond that limit to promote the development of this sector.
The move assumes significance as FDI in the existing pharma companies has been a contentious issue as concerns have been raised over some M&As of Indian pharma companies by foreign giants.
India is recognised as a major generic medicine hub of the world. The market size of the country’s pharma industry is estimated at over USD 20 billion.
The government has also permitted 100 per cent FDI under automatic route in several wings of the broadcasting carriage services which include teleports, direct-to-home, cable networks, mobile TV and headend-in-the sky broadcasting service.
Shares of Den Networks rose by 2.99 per cent, Dish TV India was up 1.97 per cent and Sun TV Network gained 0.46 per cent on BSE. SUM SBT ABI