Market has gone bullish after the money raise news of the company and this rise in HDFC Life share price is expected to continue further as the stock has given fresh breakout today at ₹747
HDFC Life share price today shot up around 6 per cent ahead of company's board meeting scheduled tomorrow. The life insurance company had informed Indian exchanges that company's board meeting will take place on 3rd September to approve issue of equity shares through preferential allotment. The market has gone bullish after this money raise drive of the company and this rise in HDFC Life share price is expected to continue further as the stock has given fresh breakout today at ₹747. Stock market experts have advised investors to buy HDFC Life shares at current market price for short-term target of ₹850.
Speaking on the re3ason for rise in HDFC Life share price; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "HDFC Life is planning to raise some funds through issuance of equity shares through preferential allotment. The company has informed about this to the Indian exchanges and the scheduled board meeting for approval to this fund raise programme of the company is tomorrow. Market has gone bullish on HDFC Share price due to this reason."
Standing in sync with Avinash Gorakshkar's views; Ravi Singhal, Vice Chairman at GCL Securities said, "The stock has broken flat pattern after 19 weeks consolidation and it has given fresh breakout today at ₹747 per stock levels. So, the stock is looking highly bullish in immediate short-term and my suggestion to stock market investors is to initiate momentum buy in HDFC Life shares at current market price as it may go up to ₹850 in next one month from here. However, one must maintain strict stop loss at ₹744 while taking this position in HDFC Life."
Recently, HDFC Life Insurance Company had informed Indian exchanges about the board meeting to approve issuance of equity through preferential allotment. The BSE informed about the communication citing, "HDFC Life Insurance Company Ltd. informed BSE that the meeting of the Board of Directors of the Company is scheduled on 03/09/2021, inter alia, to consider and approve issue of equity shares and/or other securities of the company by way of preferential allotment, subject to such approvals as may be required under application law, and to consider convening of a meeting of the shareholders' of the Company to obtain approval for such issue, if required.