Profit-led rally in GIC may fizzle out sans turnaround in underwriting biz

Unless the underwriting business starts looking up, brokerages are reluctant to give a buy call on the stock despite the recent rally

After being a big laggard for more than four years since its initial public offer, public sector firm General Insurance Corporation (GIC) has now started to outperform the broader market. Its stock price was up 8.8 per cent on Wednesday compared to a 0.23 per cent rise in the benchmark BSE Sensex during the day.

The stock has now rallied 29 per cent in the last one and half months against a 3.2 per cent rise in the Sensex during the period. Thanks to its recent rally, GIC is now up 13.6 per cent since the start of the current