Insurance stocks rally up to 8% on FDI hope

Stocks of insurance companies surged up to 8.4 per cent today on hopes of hike in foreign direct investment (FDI) limit in the sector.
Shares of Bajaj Finserv rallied 8.39 per cent, while Max India surged 6.92 per cent on the BSE.
Among others, Reliance Capital gained 3.88 per cent and Aditya Birla Nuvo rose by 2.03 per cent.
Meanwhile, the government is likely to get a favourable view from a Parliamentary panel scrutinising the Insurance Bill that proposes raising foreign investment cap to 49 per cent, after the Congress agreed on most provisions except allowing FIIs.
Finance Ministry Arun Jaitley recently had said efforts were on to take up the long pending bill in the ongoing Winter Session.

The Bill proposes to raise the composite foreign investment ceiling (including FDI, FII and NRI) from 26 per cent to 49 per cent.