HDFC Life jumps 10% in seven days

HDFC Life Insurance Company rose 1.41% to Rs 580.55, extending gains for the seventh trading session.

Shares of HDFC Life Insurance Company surged 9.93% in seven consecutive sessions.

On the BSE, 88,000 shares were traded in the counter so far compared with average daily volumes of 1.13 lakh shares in the past two weeks. The stock hit a high of Rs 587.05 and a low of Rs 572 so far during the day.

The stock hit a 52-week high of Rs 709.90 on 3 December 2021. The stock hit a 52-week low of Rs 497.30 on 8 March 2022.

The stock had outperformed the market over the past one month, advancing 8.92% compared with 4.06% rise in the Sensex.

The counter had underperformed the market in past one quarter, rising 2.41% as against Sensex's 5.69% rise.

The scrip had also underperformed the market in past one year, declining 15.72% as against Sensex's 6.58% rise.

On the technical front, the stock's daily RSI (relative strength index) stood at 72.575. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On the daily chart, the stock was trading above its 50-day, 100-day and 200-day simple moving average (SMA) placed at 537.48, 546.20 and 553.28 respectively.

HDFC Life Insurance Company is a joint venture between HDFC, India's leading housing finance institution and Abrdn (Mauritius Holdings) 2006, a global investment company. HDFC Life is a leading long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity and health.

On consolidated basis, the insurance company's net profit rose by 19.3% to Rs 329.02 crore on 11.9% increase in total income to Rs 23,170.03 crore in Q2 FY23 over Q2 FY22.

Meanwhile, HDFC Life entered into an agreement dated 23 November 2022, in relation to an initial investment in the seed equity capital of the proposed joint venture (JV) company of Indian Oil Corporation (IOCL) and Chennai Petroleum Corporation (CPCL).

The target entity proposes to implement a 9 MMTPA refinery at Nagapattinam, Tamil Nadu, in which IOCL and CPCL shall together hold 50% equity stake (25% each) and balance would be held by other JV partners.

The refinery shall produce petroleum products including MS (Petrol), HSD (Diesel), LPG, etc. and petrochemical products such as polypropylene.

The target entity is initially proposed to be incorporated through seed capital of Rs 5 lakh, in which HDFC Life will invest a cash consideration of Rs 55,000 for acquiring 11% shareholding of the total paid‐up capital of the target entity.

HDFC Life as seed equity investor does not have any obligation to fund the future equity requirement of the project, beyond initial seed capital contribution of Rs 55,000.

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