 "Insurance stocks extends gain as Parliament passes insurance bill")
Shares of companies having insurance subsidiaries were trading higher on the bourses after the Upper house of parliament passes insurance bill that proposes increase in insurance FDI limit to 49%.
Max India, Reliance Capital, Aditya Birla Nuvo, Exide Industries, Bajaj Finserv, ICICI Bank and Edelweiss Financial Services were up 2-6% on the National Stock Exchange (NSE).
The Bill, already passed by the Lok Sabha, seeks to increase the cap on foreign direct investment (FDI) in the insurance sector from 26% to 49%. CLICK HERE TO READ FULL REPORT
The government's move to increase FDI limit will benefit private sector insurance companies, which require a huge amount of capital.
For the insurance industry the passing of the bill will help in putting in place a more progressive regulatory framework. The FDI/FPI limit increase will lead to capital inflows which could be used to expand distribution and to invest technology and service infrastructure, said Deepak Mittal, MD & CEO, Edelweiss Tokio Life Insurance.
Among the individual stocks, Max India has rallied 6% to Rs 520 in early morning trading, extending its previous day’s 5% gain on the NSE.
Bajaj Finserv was up 5% at Rs 1,552, followed by Reliance Capital (up 4% at Rs 510), Edelweiss Financial Services (4% at Rs 72), Exide Industries (3% at Rs 197) and Aditya Birla Nuvo (2% at Rs 1,706).
Max India, Reliance Capital, Aditya Birla Nuvo, Exide Industries, Bajaj Finserv, ICICI Bank and Edelweiss Financial Services were up 2-6% on the National Stock Exchange (NSE).
The Bill, already passed by the Lok Sabha, seeks to increase the cap on foreign direct investment (FDI) in the insurance sector from 26% to 49%. CLICK HERE TO READ FULL REPORT
The government's move to increase FDI limit will benefit private sector insurance companies, which require a huge amount of capital.
For the insurance industry the passing of the bill will help in putting in place a more progressive regulatory framework. The FDI/FPI limit increase will lead to capital inflows which could be used to expand distribution and to invest technology and service infrastructure, said Deepak Mittal, MD & CEO, Edelweiss Tokio Life Insurance.
Among the individual stocks, Max India has rallied 6% to Rs 520 in early morning trading, extending its previous day’s 5% gain on the NSE.
Bajaj Finserv was up 5% at Rs 1,552, followed by Reliance Capital (up 4% at Rs 510), Edelweiss Financial Services (4% at Rs 72), Exide Industries (3% at Rs 197) and Aditya Birla Nuvo (2% at Rs 1,706).