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Shares of companies having insurance subsidiaries are in focus and trading higher by up to 7% on the bourses as media reports suggest that the Congress will not vote against the insurance bill in Rajya Sabha which seeks to raise the foreign direct investment (FDI) cap from the existing 26% to 49%. CLICK HERE TO READ FULL REPORT
Max India has rallied 7% to Rs 498 on the National Stock Exchange (NSE). The stock hit a high of Rs 514 during intra-day trade has seen more than two-fold jump in its trading volumes. A combined 1.12 million shares have changed hands on the counter till 0945 hours on BSE and NSE.
Reliance Capital was up 4% at Rs 460, followed by Exide Industries (3% at Rs 189), Aditya Birla Nuvo (2% at Rs 1,642) and Bajaj Finserv (2% at Rs 1,483).
The government's move to increase FDI limit will benefit private sector insurance companies, which require a huge amount of capital.
