Insurance stocks gain 9% on hopes of FDI hike

Stock prices of insurance companies saw renewed buying interest and surged up to 9 per cent in view of the reports that government is contemplating raising FDI cap in the sector.
Max India rose by 9.01 per cent, while Reliance Capital shares rallied 5.22 per cent on the BSE.
Shares of Bajaj Finserv gained 4.83 per cent, while Religare Enterprises was up 2.58 per cent.
Reports said earlier this week that the Finance Ministry is contemplating raising FDI cap in insurance sector from 26 per cent to 49 per cent with some riders like restriction on voting rights.
"We might increase FDI cap in insurance without commensurate increase in voting rights. We talked with stakeholders and also held high level meeting in ministry," a senior ministry official had said earlier this week.

He had also said that the government may raise FDI cap in the sector gradually beginning with non-life and health followed by life insurance segment.