HDFC Life at 52-week low; down 7% in five days

24 Feb 2022 , 12:31 PM

Shares of HDFC Life Insurance Company have declined nearly 7.5% in five trading sessions from its previous closing high of Rs 592.50 posted on 17 February 2022. The counter has fallen nearly 29.3% from its 52-week high of Rs 775.65 hit on 2 September 2021. The stock hit a 52-week low of Rs 546.3 in intraday today.

In one month, the stock has fallen 12.6% as compared to a 3.4% fall in Nifty 50 index.

The counter came under selling pressure amid rising geopolitical tensions in Russia and Ukraine. Russian President Vladimir Putin announced military action on Thursday. The company has a strong presence in Russia and Europe overall. Revenues from Europe market stood at Rs 410 crore in Q3 FY22. The drug maker also partnered with Russian Direct Investment Fund (RDIF) for the development of Sputnik V vaccine.

On the technical front, the stocks RSI (relative strength index) stood at 28.452. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading above its 50 and 100 days simple moving average placed at 629.05 and 663.10 respectively. These levels will act as crucial resistance zones in near term.

HDFC Life Insurance Company is a joint venture between HDFC, Indias leading housing finance institution and abrdn (Mauritius Holdings) 2006, a global investment company. HDFC Life is a leading long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity and health.

The private life insurer reported a 3.27% rise in standalone net profit to Rs 273.65 crore in Q3 FY22 as against Rs 264.99 crore in Q3 FY21. Total income fell 32.68% to Rs 14,222.22 crore in Q3 FY22 over Q3 FY21. Profit before tax in Q3 FY22 stood at Rs 275.90 crore, up 3.33% over Q3 FY21.

Meanwhile, the BSE Sensex was down 1,711.19 points or 2.99% at 55,486.75 amid escalating geopolitical tensions between Ukraine and Russia.

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