Insurance related stocks mixed

Shares of 8 companies that have promoted insurance firms were mixed at 11:38 IST on BSE on reports of continued deadlock between the government and the opposition parties on the Insurance Bill.

Aditya Birla Nuvo (up 1.88%), Reliance Capital (up 0.18%), Max India (up 1.03%) and Religare Enterprises (up 1.72%) edged higher.

However, HDFC (down 0.39%), Bajaj Finserv (down 0.45%), State Bank of India (down 0.81%) and ICICI Bank (down 1.58%) edged lower.

The S&P BSE Sensex was down 66.43 points, or 0.26% at 25,841.58

HDFC owns a controlling stake in HDFC Standard Life Insurance. ICICI Bank holds 73.90% in the ICICI Prudential Life Insurance Company. State Bank of India holds 74% in the SBI Life Insurance Company. Aditya Birla Nuvo owns stake in Birla Sun Life Insurance Company. Reliance Capital holds stake in Reliance General Insurance Company. Bajaj Finserv holds 74% in Bajaj Allianz General Insurance. Max India operates insurance business. Religare Enterprises operates AEGON Religare Life Insurance Company.

 

As per reports, the government's effort to push the Insurance Bill recently failed to get nod from unrelenting Opposition parties, including the Congress, which have jointly asked the Rajya Sabha chairman to refer the bill to an all-party parliamentary panel called the select committee for review.

The ruling NDA government enjoys majority in the Lok Sabha, but is in a minority in the Rajya Sabha. The NDA government is trying to break the deadlock and needs the Congress's help to pass the Insurance Bill. An all-party meeting scheduled for today, 6 August 2014 has been reportedly scrapped. The government is expected to take a final call on the issue tomorrow, 7 August 2014 reports added.

The Finance Minister Arun Jaitley in the Union Budget 2014-15 on 10 July 2014 raised foreign direct investment in the insurance sector to 49% from 26%.

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