Insurers gain after cabinet approves FDI hike

Reuters Market Eye - Insurers gain after the cabinet approves raising the foreign direct investment (FDI) limit in the insurance sector.

The FDI hike to 49 percent from 26 percent had been proposed in the budget early this month.

The hike will need parliamentary approval.

The government hopes to get it passed by early next month, a senior government official tells Reuters.

Reliance Capital gains 4.1 percent, Max India up 0.75 percent, Bajaj Finserv rises 0.02 percent and Exide Industries adds 0.59 percent.

(Reporting by Abhishek Vishnoi)