Insurance-related stocks have significantly weakened since the Budget proposed to tax income from traditional policies with an annual premium of over Rs 5-lakh. Shares of HDFC Life, SBI Life, ICICI Prudential (ICICI Pru), Max Financial (owner of Max Life), Life Insurance Corporation (LIC), General Insurance Corporation and New India Assurance have lost 3-19 per cent so far since February 1. In comparison, the NSE Nifty has been up around 0.6 per cent during this period.
Going ahead, analysts expect the underperformance to continue in the near-term as the government’s new tax regime push, with no tax saving deductions, could hurt demand for insurance products. The pain in these counters, they believe, will not last long and long-term investors should consider accumulating the stocks given the recent selloff.
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Subscribe To Insights
Key stories on business-standard.com are available to premium subscribers only.Already a BS Premium subscriber? Log in NOW
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Low rate regime: Why corporation tax is a hit but not personal tax?
Budget 2023: New tax regime (II) can help you save more in taxes
Old income tax regime vs new income tax regime: Which one is better?
McLeod Russel India lenders likely to discuss Carbon Resources proposal
New and old: How two tax regimes work for home loan interest benefit
InterGlobe Aviation slips 5% after 4% equity changes hands via block deal
Sensex, Nifty end flat amid late sell-off; IT, broader indices hold gains
Stocks to watch: Nestle India, NTPC, HAL, Bharat Dynamics, MTNL, BEL
Street concerns over global slowdown weighs on Bharat Forge stock
MFIs set for better days, as collection improves, loan sales jump
HDFC Life Insur.