HDFC Life Insurance, Life Insurance Corporation of India (LIC), General Insurance Corporation of India, and other insurance stocks gained over a percent on Monday after foreign brokerage firm JPMorgan upgraded ratings and raised target prices on these stocks.
JPMorgan expects the compounding momentum of India’s insurance sector to continue, similar to trends observed over the past five years, supporting further balance sheet growth.
The foreign brokerage estimates annual growth of 15% in new business value (NBV) for life insurers, while it expects to see 12% annual growth in book value for non-life insurers over the next three years.
JPMorgan has upgraded HDFC Life shares to ‘Overweight’ and raised target price to ₹980 apiece from ₹750 earlier. The brokerage firm also upgraded GIC shares to ‘Overweight’, with an increased target price of ₹480 per share from ₹197 earlier.
LIC shares remain JP Morgan’s top ‘Overweight’ pick. It has a LIC share price target of ₹1,152 apiece.
At 11:50 AM, LIC share price was trading 1.56% higher at ₹908.20 apiece, HDFC Life Insurance Company share price was trading 0.32% higher at ₹785.05 apiece, while GIC shares were trading 0.93% higher at ₹367.35 apiece on the BSE.
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