Shares of a total of 8 firms involved in life insurance business were up 1.4% to 12.86% on renewed buying following recent media reports the finance ministry could recommend an increase in the limit on foreign direct investment in insurance sector.
Max India was up 12.86% at Rs 337. Bajaj Finserv was up 6.97% at Rs 935. Reliance Capital was up 6.13% at Rs 625.90. Religare Enterprises was up 4.8% at Rs 370.10. Aditya Birla Nuvo was up 3.2% at Rs 1,397.85. Exide Industries was up 3.3% at Rs 148.85. State Bank of India was up 1.56% at Rs 2,685.50. ICICI Bank was up 1.4% at Rs 1,478.80. Shares of HDFC were off 0.36% at Rs 909.40. All these firms have their presence in the life insurance sector either directly or through joint venture with foreign companies.
As per recent media reports, the finance ministry could recommend an increase in the limit on foreign direct investment (FDI) in insurance sector to 49% from 26%. The finance ministry is likely to propose capping of voting rights for foreign investors so as to ensure that the control of the critical sector involving lifetime's savings of a large number of people does not pass into foreign hands, reports suggest. The government will also discuss the feasibility of allowing 49% foreign investment in the sector with FDI retained at 26% and rest through foreign institutional investors (FII), reports suggest.
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