The Union Cabinet on Wednesday approved a production linked incentive (PLI) scheme for semiconductor and display board production in the country, I&B Minister Anurag Thakur said.
The scheme envisages investment of Rs 76,000 crore in semiconductor production over the next 5-6 years, he said.

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Telecom and IT Minister Ashwini Vaishnaw said the decision will help design, fabrication, packing and testing of the microchips and develop a complete ecosystem.

Meanwhile, good news for investors of certain stocks. One of the stocks that must be tracked is Bharat Heavy Electricals Limited (BHEL), Moschip Technologies Limited and Bosch Limited.

Tata Group has also expressed interests and indicated of setting up a plant.

It is a focus area as segment offers huge opportunities amid global shortages of semi-conductors.

Zee Business Managing Editor Anil Singhvi calls this a big development and said that BHEL management had previously told Zee Business that it had plans of expansion in this vertical. It had already begun work in this regard, Singhvi said.

While, Moschip Technologies Limited and Boschare small sized companies, the news is of importance for BHEL, he further said.

BHEL shares today ended in the red on the NSE at Rs 64.40, down by 0.6 per cent.

Technical Analyst Sacchitanand was optimistic about BHEL shares and said that the stock is undergoing maturing of three consecutive days of consolidation. Today’s moves have led to a short term convergence in 5-day and 20-day moving averages.

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He recommends a buy at a stop loss of Rs 63 and price target of Rs 70.

Echoing similar sentiments, analyst Vikas Sethi said that investors could look to buy this stock. Notwithsatnding today's correction, he said that the stock may gain when more clarity emerges. He puts target between Rs 75-80.