Mumbai: Stock prices of insurance companies saw renewed buying interest and surged up to 9 percent in view of the reports that government is contemplating raising FDI cap in the sector.
Max India rose by 9.01 percent, while Reliance Capital shares rallied 5.22 percent on the BSE.
Shares of Bajaj Finserv gained 4.83 percent, while Religare Enterprises was up 2.58 percent.
Reports said earlier this week that the Finance Ministry is contemplating raising FDI cap in insurance sector from 26 percent to 49 percent with some riders like restriction on voting rights.
"We might increase FDI cap in insurance without commensurate increase in voting rights. We talked with stakeholders and also held high level meeting in ministry," a senior ministry official had said earlier this week.
He had also said that the government may raise FDI cap in the sector gradually beginning with non-life and health followed by life insurance segment.
