Insurance stocks gain after draft report on insurance bill tabled in Rajya Sabha

Shares of six companies that run insurance business rose by 0.49% to 6.07% at 13:00 IST on BSE on reports a parliamentary committee has recommended a composite cap of 49% on foreign investment in insurance in a report tabled in the Rajya Sabha.

Meanwhile, the BSE Sensex was up 46.51 points or 0.17% to 27,853.18.

Among insurance stocks, ICICI Bank (up 0.49%), HDFC (up 0.34%), Aditya Birla Nuvo (up 1.18%), Max India (up 6.07%), and Reliance Capital (up 3.58%) gained. However, Bajaj Finserve fell 1.63%.

State Bank of India rose 1.81% after the bank's chairman Arundhati Bhattacharya reportedly said lending rates will come down when credit picks up and the cost of funds come down.

The select committee report tabled in the Rajya Sabha today, 10 December 2014, reportedly said that the cap on foreign investment in insurance include foreign direct investment and foreign portfolio investments. The insurance Bill has been with the Rajya Sabha since 2008.

Finance Minister Arun Jaitley said in his maiden budget speech in July that the "composite cap" in the insurance sector should be increased to 49% from the current level of 26%, with full Indian management and control.

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