In the past three months, the RIL stock has surged 29 per cent, outperforming the Sensex (which is up 10 per cent), amid renewed optimism around its growth prospects
Analysts expect stocks to remain under pressure in the near-term as the government's new tax regime push, with no tax saving deductions, could hurt demand for insurance products
The government has lifted tax exemption on life insurance policies issued with aggregate premium of over Rs 5 lakh in a year (other than Ulips) with effect from April 1, 2023
Technically, prior to this announcement, the price structure of SBI Life Insurance Company and Max Financial Services were highlighting a bullish sentiment and were on the verge of the next up move
Stocks to watch today: The Board of Adani Enterprises (AEL) has announced that it will not go-ahead with the fully subscribed Follow-on Public Offer (FPO)
Analysts positive on most of the stocks, especially SBI Life, HDFC Life and LIC
According to the technical analyst from Anand Rathi, HDFC Life can jump to Rs 660; while ICICI Prudential Life can rally to Rs 510.
Kotak Institutional Equities has initiated coverage on Life Insurance Corporation of India (LIC) with a 'buy' rating and a fair value of Rs 1,000
However, the overall market wide position dipped below Rs 2.20 lakh crore for the first time in the last six months.
Among individual stocks, even as SBI Life trades record high the stock has been unable to enter unchartered territory. The proposed changes to the sector may help revive sentiment going forward.