The indices after a winning streak of 4 consecutive days in line with Asian markets took a hit today with Nifty down to 17,718 points after hitting levels of 17,925 in yesterday’s trading.
All sector indices are trading at a low level with a major slowdown observed on the Nifty IT pack of nearly 1.7%. Meanwhile, the Nifty Financial Services Index follows with a loss of 1.29%. Now in the financial services package, which sees a drag of up to 2% on stocks like HDFC, HDFC Bank and the company Shriram Transport Finance.
In addition to the 20 stock index, one of 2 insurance stocks is trading near its 52-week high. The stock we are talking about here is SBI Life which has the highest price over 52 weeks is Rs. 1273.9 per share, while its last traded price is Rs. 1214.5. This means the stock is only 5% off its 52-week highest price.
Likewise, there is another HDFC Lifes share that is trading near its 52 week low price of Rs. 627. The last traded price is Rs. 646.8 per share. A 3 percent deviation from the 52-week low price. For HDFC Life stock, all other group companies underperformed benchmarks with a 1-year HDFC Bank return at 8%, HDFC return at negative return and HDFC Life at a negative return. 1-year yield of -9%.
For HDFC Life, given its good quarterly figures with a net profit of Rs. 274 crore for the quarter ended in September and the new business premium was Rs. 6,596 crore, there is a good outlook. The company has been designated as “Buy” given the Exide deal and favorable winds for the industry by Choice Broking for 2022. The company has given a price target of Rs. 833, which implies a 29% hike. from here.
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