Insurance firms' stocks gain after Parliament passes Insurance Bill

Shares of insurance companies surged on Friday after Parliament passed the controversial Insurance Bill, which proposes to increase foreign investment limit in the sector to 49 per cent.

Max India's scrip gained 4.8 per cent, followed by shares of Reliance Capital (3.9 per cent) and Exide Industries (2.7 per cent).

Later, the Max India stock closed 4.08 per cent lower amid widespread selling across the market. Reliance Capital and  Exide Industries stock fell 3.13 per cent and 2.11 per cent, respectively.

The Rajya Sabha agreed to increase the foreign investment limit in insurance firms to 49 per cent from 26 per cent after the Congress, the main opposition party, supported the Insurance Laws (Amendment) Bill, 2015, that was cleared by the Lok Sabha last week.

(Reuters)