Financial stocks surge as Parliament approves Insurance Bill
Mumbai: Stocks of companies with interest in insurance sector extended their uptrend for the second straight session and surged by 2-7 per cent after Parliament yesterday approved the long-pending Insurance Bill.
Following this, shares of Max India Ltd jumped 6.71 per cent, Bajaj Finserv soared 6.41 per cent, Reliance Capital rose 5.11 per cent and Aditya Birla Nuvo was up 2.24 per cent on the BSE.
These stocks had gained up to 11 per cent yesterday.
Parliament last night passed Prime Minister Narendra Modi-led NDA government’s first major economic reform measure as the long-pending Insurance Laws (Amendment) Bill, 2015, providing for raising foreign investment cap in the sector to 49 per cent was passed by Rajya Sabha after main opposition party (Congress) and some other parties came on board.
The bill, which was passed by Lok Sabha on March 4, provides for raising the foreign investment cap in insurance sector from 26 per cent to 49 per cent and is expected to bring in funds worth thousands of crores into the sector.