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Last Updated : Sep 10, 2019 01:05 PM IST | Source: Moneycontrol.com

Buy or Sell | Here's why SBI Life is a fundamentally strong buy amid cautious market

Trade with caution and be very stock specific, focus on fundamentally strong stocks.

Moneycontrol News @moneycontrolcom

There has been a positive movement in the global markets primarily on account of good manufacturing data from China and Europe.

However, Indian markets have been on the downside on account of very bad Q1 GDP data which has gone down to 5 percent. Also, there has not been much stimulus which was expected out of Finance Minister Nirmala Sitharaman that has not happened. Auto sales have been down and that has been a significant whammy in the Indian markets.

The PSU Bank merger which was announced has not been taken well by the markets and Bank Nifty corrected for the entire week. PSU Bank and realty index were down by 3 percent while Pharma was up by 2 percent and metals were up by 2.6 percent. We expect consolidation to happen in the Indian markets. However, with global markets positive, the bottom looks limited.

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Trade with caution and be very stock specific, focus on fundamentally strong stocks.

We have a positive view on the insurance segment and SBI Life is one of the leading players. Q1 FY20 results were quite good. Business has been growing around 40 percent YoY basis. Strong parentage, good product and very strong persistence ratio of 56.27 percent and capital position are also comfortable in terms of business model, said Dinesh Rohira, Founder & CEO, 5nance.com.

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First Published on Sep 10, 2019 01:05 pm
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