Stock market news: Insurance stocks have been on an uptrend in the last week. In this period, ICICI Prudential Life Insurance Company shares have rallied over 8 percent, whereas SBI Life Insurance Company shares have rallied around 8 percent. Shares of HDFC Life Insurance Company Limited have risen around 6 percent in the last week, while LIC share price has registered around 4 percent upside in this time horizon.
According to stock market experts, LIC has delivered a promising Q1FY25 business update, whereas ICICI Prudential, SBI Life, and HDFC Life have delivered strong Q1 results 2024. They said insurance companies were under pressure ahead of the Union Budget 2024 due to the tax rationalisation buzz. But this year’s budget had no such surprise package for the insurance sector.
Triggers for insurance stocks
Highlighting the factors fueling insurance stocks in the Indian stock market, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “Insurance stocks are rising due to promising Q1FY25 business updates followed by strong Q1 results 2024. ICICI Prudential, SBI Life and HDFC Life nas delivered positive Q1FY25 results, while the LIC reported a strong business update during the April to June 2024 quarter. Apart from this, the insurance industry stocks are gaining after the surprise announcement in the Budget 2024. There was a buzz about tax rationalisation in the segment that was only a mere sentiment. The FM hasn’t touched the taxation in the insurance sector, which has also gone down well on Dalal Street.”
Unveiling the stock market strategy regarding insurance stocks, Sumeet Bagadia, Executive Director at Choice Broking, said, “LIC share price has strong support at ₹1120, and it may touch ₹1200 and ₹1250 in the near term. Similarly, ICICI Prudential shares have crucial support at ₹690 while facing a hurdle at ₹780 apiece level. HDFC Life share price is expected to touch ₹750 apiece level in the short term, and it has crucial support placed at ₹690.”
Insurance stocks to buy today
When asked about the insurance shares to buy today, Sumeet Bagadia of Choice Broking said that the LIC share price is better placed, followed by ICICI Prudential Life Insurance Company shares.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
