OPEN APP
Home / Markets / Stock Markets /  SBI Life share price hits record high. What is driving this insurance stock?
Listen to this article

SBI Life share price: On account of better quarterly numbers expected from insurance companies in upcoming few quarters and being one of the well managed life insurance companies, shares of SBI Life climbed to record high in early morning deals when it made an intraday high of 1,334.70 apiece levels on NSE. However, profit-booking in the counter triggered soon and SBI Life shares are currently quoting around 1,325 apiece levels.

According to stock market experts, after Covid-19, margins of the insurance companies are expected to improve and market is expected better quarterly numbers from insurance companies in short to medium term. SBI Life being a well managed insurance company backed by State Bank of India (SBI), is one of the quality insurance stocks that is expected to deliver better numbers and good upside movement in this period. That's why bulls are heavily buying SBI Life shares. They said that those who have this stock in portfolio should hold the counter for short term target of 1,400 levels.

Speaking on the reasons for rise in SBI Life share price, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "After Covid-19, insurance companies are expected to give better quarterly numbers as their margins are going to improve due to decrease in insurance claims. Apart from this, SBI Life3 is one of the well managed insurance companies that may get benefit of the SBI backing as well. So, people are buying SBI Life shares with sharp upside expectations due to these fundamentals."

Advising SBI Life shareholders to further hold this insurance stock, Sumeet Bagadia, Executive Director at Choice broking said, "SBI Life shares have given flag pattern breakout and it is still looking in uptrend on chart pattern. The insurance stock may go up to 1,380 to 1,400 per share levels in short term. So, those who have this stock in their portfolio are advised to hold the stock for this short term target maintaining stop loss at 1,290 apiece levels. However, fresh investors should wait for the profit booking as the stock has already surged a lot."

SBI Life share price today opened with an upside gap and climbed to its life-time high of 1,334.70 apiece levels, logging near 1 per cent intraday rise on Friday trade session. The insurance stock has been in uptrend for last one month, logging more than 13 per cent surge in this time.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout