Mumbai: Stocks of insurance companies surged up to 8.4 percent Wednesday on hopes of hike in foreign direct investment (FDI) limit in the sector.
Shares of Bajaj Finserv rallied 8.39 percent, while Max India surged 6.92 percent on the BSE.
Among others, Reliance Capital gained 3.88 percent and Aditya Birla Nuvo rose by 2.03 percent.
Meanwhile, the government is likely to get a favourable view from a Parliamentary panel scrutinising the Insurance Bill that proposes raising foreign investment cap to 49 percent, after the Congress agreed on most provisions except allowing FIIs.
Finance Ministry Arun Jaitley recently had said efforts were on to take up the long pending bill in the ongoing Winter Session.
The Bill proposes to raise the composite foreign investment ceiling (including FDI, FII and NRI) from 26 percent to 49 percent.
