India's HDFC Life jumps over 8% after RBI allows HDFC Bank to up stake

Housing Development Finance

24/04/2023 05:30

** Shares of HDFC Life Insurance  HDFL.NS  rise as much as
8.2% to 555.55 rupees, biggest intra-day pct gain since April 4
    ** Top Indian private lender HDFC Bank  HDBK.NS  on Friday
said Indian central bank allowed the bank to raise its stake to
over 50% in HDFL
    ** RBI allows stake raise before the merger between HDFC
Bank and HDFC  HDFC.NS  closes
    ** RBI's approval a double booster shot in HDFC Life's arm -
Emkay Global says in a research note, upgrading stock to "buy"
from "hold", raising PT to 650 rupees from 550 rupees
    ** HDFL's share in HDFC Bank channel (currently ~50%) is 
likely  to gradually  improve; cost of distribution in HDFC Bank
channel could also improve, aid margins - Emkay
    ** About 7.8 mln shares change hands, 2x 30-day avg
    ** Twenty-five out of 31 analysts rate stock at "buy" or
above, 3 "sell" or below; 3 hold; media PT at 650 rupees
    ** HDFL shares down 3.8% YTD after losing ~13% last year
    
     

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))