Indian shareholders appear to like the idea of increased foreign investment in newsmedia.

Shares in some Indian newspaper publishers rose after news last month that the finance ministry was recommending an increase in the cap on foreign ownership from 26 per cent to 49 per cent.

Both DB Corp and Jagran Prakashan appear to have sustained rises, the latter closing at a record INR 182.4 ($3.57) after the news. HT Media also put on a spurt but has had difficulty sustaining it.

Bloomberg reported early last month that the Indian government was considering allowing the increase, which would follow higher investment limits in segments including airlines, railways and defence since the Modi government took power two years ago. It said a decision would be taken by the industrial policy and promotion department.