Leading insurers SBI Life, HDFC Life, Bajaj Finserv rise 3% as Investec sees no setback in new tax bill

Life insurance

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Shares of leading private life insurers saw strong gains on February 12, after an Investec note said the new Income Tax Bill - to be tabled on Thursday - will not change the preferential corporate tax rate for the sector.

Brokerage Investec said that the new tax bill is not expected to change the preferential tax rates that apply to life insurance companies, instead keeping a status-quo, thus removing a major overhang for the sector.

The Corporate Tax that life insurers are required to pay is much lower than what businesses in other sectors pay. Equity analysts had expressed concern over whether the new Income Tax Bill would change this provision for life insurance companies, as it may have a negative impact of the tax liability.

Bajaj Finserv, which provides both life and general insurance, was the top gainer on Sensex and Nifty 50, rising nearly 3 percent to close at 1,792 apiece. The stock was a strong contributor to the day's gain on the index.

Bajaj Finserv shares are currently over 26 percent higher than their 52-week low of Rs 1,419 apiece. The stock, however, is still down nearly 11 percent from its 52-week high of Rs 2,029.9 apiece.

SBI Life Insurance shares surged over 2 percent to close at Rs 1,448 apiece, with a significant surge in trading volumes. Nearly 15.9 lakh shares were involved in active trade on February 12, which is 1.24 times higher than its 10-day average volume.

Despite the surge, SBI Life shares are hovering near its 52-week low of Rs 1,307.70 apiece. The stock is still 25 percent lower than its 52-week high of Rs 1,936 apiece, which it had hit in September 2024.

HDFC Life shares also saw strong gains, rising nearly 2 percent to close at Rs 628.85 apiece. The stock is currently higher than its 50-day moving average.

Also Read: Bajaj Finserv may break ties with Allianz in H1CY25, possibly as soon as March-end

While shares of leading life insurers ended higher, LIC shares sharply fell to a new 52-week low of Rs 776 apiece.