Shares of companies engaged in the insurance business such as Aditya Birla Nuvo, Max India and Reliance Capital on Thursday surged as much as 5% on hopes that the government will accelerate pace of economic reforms by raising FDI cap in the sector.
Aditya Birla Nuvo gained 5% to Rs. 955, while Max India jumped 4.8% to Rs. 244.50 on the BSE.
Among others, shares of Reliance Capital rose by 4%, while Bajaj Finserv was up 3.45%.
Unfazed by the uproar over decision on FDI in retail, the government is determined to give a push to reforms, with the Union Cabinet set to consider today big-ticket measures like opening pension sector to foreign investment and raising FDI cap in insurance sector to 49%.
The Insurance Laws (Amendment) Bill seeks to raise the FDI cap in insurance sector to 49% from the 26% at present.
In the broader market, the BSE 30-stock index, Sensex, was trading at 19,049.27, up 179.58 points at 1133 hrs.