This Article is From Oct 04, 2012

FDI in insurance, infra reforms coming: Track these 10 stocks

FDI in insurance, infra reforms coming: Track these 10 stocks
The government is all set to raise the cap on foreign direct investment in insurance firms and open the pension sector to foreign investors on Thursday. Infra projects may soon get faster clearance. The latest string of reforms has triggered a sharp up move in markets. The Sensex hit a 15-month high today and traded above the 19,000 mark.

These stocks drove the market rally

  1. ICICI Bank: Shares are trading at a new 52-week high after gaining nearly 20 per cent over the last month. Financial companies with insurance units have rallied since the government proposed to ease some of the taxes affecting the insurance sector, while easing some of the requirements of pension products sold via banks. An increase in the foreign direct investment limit in the sector to 49 per cent from 26 per cent would further drive the stock.  

  2. Reliance Capital: Shares are trading near their 52-week high of Rs 482 after gaining nearly 40 per cent over the last month. The Anil Ambani-promoted firm remains one of the key beneficiaries of insurance sector reforms. The expectation of FDI in insurance being raised up to 49 per cent from 26 per cent has led to a sharp rally in the stock.

  3. Max India: Shares are trading at their highest since December 2009 after gaining nearly 35 per cent over the last month. A multi-business corporate, it operates in the life insurance, healthcare, and health insurance space.

  4. Bajaj Finserv: Shares have hit 52-week high after gaining over 17 per cent in the last month. It has a joint venture with Allianz AG for its general insurance and health insurance businesses.

  5. Aditya Birla Nuvo: Shares are trading near their 52-week high of Rs 1,028 after rising 25 per cent over the last month. It is one of the two non-bank players in India which ranks among top five players in both the life insurance and asset management businesses.

  6. IVRCL: The construction firm has gained 30 per cent over the last month. It was the top traded stock, in terms of volumes, on the BSE 500. The Cabinet Committee on Economic Affairs is likely to take up the proposal of National Investment Board, which will be headed by the PM. The board will be a single window clearance for infra projects of over Rs 1000 crore.

  7. NCC Ltd: The stock has gained 60 per cent in the last one month. The government earlier said it would allow insurance companies to invest in infrastructure projects. Last month, the withholding tax for overseas borrowing was also cut for the sector.

  8. HCC: Shares have gained over nearly 20 per cent over the past month.

  9. IDFC: Lenders with bigger exposure to infrastructure also gained. The stock is trading at its highest since April 2011. It has gained over 25 per cent in the past month.

  10. Yes Bank: The private lender has substantial exposure to the infra sector. It is trading at a record high after gaining over 20 per cent in the last month.


    (With inputs from agencies)