Tamil News | HDFC, LIB shares in 52-week slump: What do experts say?

All insurance company stocks have seen a sharp decline post-Budget. The reason is that they have announced in the budget that only premiums under Rs 5 lakh for traditional insurance policies like whole life insurance, moneyback, endowment will be tax exempt from the financial year 2024. This will reduce the number of policyholders for tax exemption. Due to this, the income of insurance companies is expected to decrease. This affects stock prices.

Shares of private insurer HDFC Life fell below Rs 500 in February 2022. It then recovered gradually and crossed the 52-week high of Rs 610 in January this year. After the budget announcement, it fell by around 17%. Today it closed at Rs.483 close to its 52-week low.

How about quarterly results

The company’s profit grew 15% to Rs 315 crore in the third quarter ended December 2022.

What the experts say

Krishnan, an analyst at Angel One Brokerage, said, “There has been a strong correction in the share price of HDFC and LIB after the budget. It has entered a 52-week low. It has risen slightly from the decline of the last few trading days. But it didn’t last. 500 was the main support. It has broken and gone down. Currently Rs.475 – Rs.470 is the support area. Technically, stocks have been oversold. If it crosses Rs 520, the share price will go up to Rs 560.” He has said.

Tips2Trades analyst Ramachandran said, “If the barrier of Rs.526 is breached on the daily chart, it will go up to Rs.550 – Rs.580 in the short term.” As predicted.