Shares of companies engaged in insurance business such as Aditya Birla Nuvo, Max India, Reliance Capital and Bajaj Finserv are in focus in morning trades on optimism for government action.
The Union Cabinet will consider today to approve a proposal to hike the cap on foreign direct investment in the insurance sector from 26% to 49%.
“The Insurance Bill, which was tabled in the Rajya Sabha in 2008, proposed to increase the FDI limit in the insurance sector to 49%, but Parliamentary Standing Committee on Finance wanted it to be retained at the current level of 26%, the PTI report suggests.
Among the individual stocks, Aditya Birla Nuvo and Max India have rallied by almost 5% each at Rs 952 and Rs 245 respectively on the Bombay Stock Exchange. Reliance Capital is up 4% at Rs 462, while Bajaj Finserv by 3% at Rs 954.
