Insurance Stocks Update: In the last 6 months, the shares of life insurance companies have fallen sharply amidst the hustle and bustle of the LIC IPO and the market conditions. The fall in some stocks of the insurance sector has been registered faster than the market. However, Emkay Global is bullish on some of these stocks. It has been recommended to buy (BUY) on the insurance sector. These companies will get the benefit of the increase in interest rates.
how far will you go
In these shares, the current price of HDFC Life is Rs 562, while it can show a level of Rs 690. At the same time, the current market price of ICICI Prudential Life is Rs 503, its target price has been given Rs 660. The current price of the share of Max Financial, which works in the insurance sector, is Rs 728 and the target is Rs 1,030. Talking about SBI Life, its share is currently getting around Rs 1,068, while the price of Rs 1645 has been given for it.
SBI Life will climb higher
According to the targets given by Emkay Global, the stock of SBI Life will climb the fastest. Some of these stocks are getting around 30 per cent fall from their 52-week highs. The brokerage firm says that the increase in interest rate at present is helpful in the growth and profit of life insurance companies. Emkay Global says that the current increase in interest rates will keep life insurance companies in a strong position.
Private sector stocks in better position
Emkay Global has said that private sector insurance companies are in a good position to increase market share amid the difficult situation. The rapidly changing external environment, increasing number of customers and awareness among people about insurance will provide a strong direction to this sector.
According to Emkay Global, private companies can be successful in breaking LIC’s share in the market. The firm has given buy recommendation on SBI Life, Max Life, HDFC Life and ICICI Prudential Life on a risk-reward basis.