Insurance and Pension reforms bring it on next

The 49% FDI in Pensions and Insurance is close to getting Cabinet approvaal as well as it seems the long pending Companies Bill 2011. Like FDI in retail, the bills for Insurance FDI may not reach parliament again and is thus safe meaning good upticks in Max India, Bajaj Finserv and HDFC that gain from the continuing investment in the dormant sector.

Max India has been lying low for a long time and pushed up from 180 sometime in the second half of September and is good for another 50% rise. ( affirmed a 300 Traget by Angel Broking’s Shardul) likely leading to another bounce based on 2013-14 performance as HDFC and ICICI start receiving bigger dividends from insurance plays. PFRDA and Companies bills would need to go thru Parliament and are unlikely to be seriously counted by market watchers, also as Products are being finalised by IRDA to stop the exit mess in Pension products that currently compete with mutual funds and thus as derivate with direct equities than with insurance and pension annuities 

 

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