Insurance sector shows promise despite market slump: Sandip Sabharwal
«The government knows that there is a slowdown, but still the government capex, government spending has not picked up. Now what is leading to that, why this stagnation is there, and what is their thought process it will become clear in a week when the budget comes in,» says Sandip Sabharwal, asksandipsabharwal.com.
What could be interesting in this market falls could be insurance. Their numbers were not bad. I looked at HDFC Life numbers, decent. Three-four years, like you said, Kotak Mahindra Bank insurance stocks have also done nothing, nobody likes them, nobody owns them, and genuinely I see that there is a turf of growth which seems to be getting made.
Sandip Sabharwal: Yes, I would agree like especially for hdfc Life the expectations were low, they reported decent numbers, stock ran up, now it has consolidated a bit. So, I think that could potentially be one stock from the insurance sector which could do well. Similarly, ICICI Lombard number on general insurance were pretty decent.
Icici Pru on life insurance and sbi Life were muted not as great. But overall that the industry has gone through a long phase of consolidation and I would agree that there could be potential opportunities. So, from the results which have come out and outlook HDFC Life stood out among all the companies which have reported till now.
Let us one works with some assumptions here that government spending will normalise, nothing negative comes or nothing majorly negative comes from the US market. Sooner than later Reserve Bank of India
