HDFC pares stake in HDFC Life

Housing Development Finance Corporation (HDFC) on Wednesday (3 June) sold 2.60 crore shares, or 1.29% equity, in HDFC Life Insurance Company through a bulk deal.

As on 31 March 2020, HDFC held 51.44% stake in HDFC Life Insurance while UK's Standard Life held 12.25% stake in the life insurer.

The Reserve Bank of India had asked HDFC to lower its stake in HDFC Life Insurance to 50% or less, the housing finance company had said in a regulatory filing last month.

Meanwhile, the media reported that UK's Standard Life sold 4 crore shares in HDFC Life through block deals on Thursday (4 June).

Shares of HDFC Life Insurance advanced 3.16% to Rs 517.25. On BSE, 4.03 crore shares were traded in the counter, compared to a 2-week average of 32.92 lakh shares. The stock hit an intraday high of Rs 525 and an intraday low of Rs 512.10. It hit a 52-week high of Rs 646.40 on 31 October 2019 and a 52-week low of Rs 339.15 on 23 March 2020.

On the technical front, the stock's RSI (relative strength index) stood at 56.917. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading between its 50-day moving average (DMA) placed at 478.03 and its 200-day moving average (DMA) placed at 550.95.

HDFC Life Insurance Company's consolidated net profit dropped 14.5% to Rs 311.65 crore on a 96.3% slump in total income to Rs 544.19 crore in Q4 March 2020 over Q4 March 2019.

HDFC Life Insurance Company provides various individual and group insurance solutions across India.

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