HDFC Life enters top-30 market cap league

With the market-cap of Rs 961.21 billion at 02:39 pm; HDFC Life stood at number 30th position in overall market-cap ranking, surpasses BPCL and Mahindra & Mahindra.

HDFC Standard Life Insurance (HDFC Life) entered the elite club of 30 stocks with highest market capitalization (market-cap) on the BSE, as its share price jumped nearly 7% on Monday in intra-day trade, extending its 7.4% gain in past five trading sessions.

HDFC Life hit an intra-day high of Rs 484 on the BSE, trading close to its highest level since listing on November 17, 2017, up 66% against issue price of Rs 290 per share. It touched record high of Rs 493.75 on January 1, 2018 in intra-day deal

With the market-cap of Rs 961.21 billion at 02:39 pm; HDFC Life stood at number 30th position in overall market-cap ranking, the BSE data shows.

HDFC Life surpasses oil marketing company Bharat Petroleum Corporation (BPCL) and automobile company Mahindra & Mahindra (M&M) in market-cap ranking today. M&M market-cap stood at Rs 927 billion, while BPCL market-cap stood at Rs 917 billion, the data shows.

Thus far in the current calendar year 2018, HDFC Life has outperformed the market by surging 24%, as compared to 2.7% decline in the S&P BSE Sensex. BPCL and M&M were down 18% and 1%, respectively, during the period.

HDFC Life has gained eight positions in past three months. Besides, BPCL and M&M, the insurance company surpassed Motherson Sumi Systems, Eicher Motors, Bajaj Auto, Bajaj Finserv, Adani Ports and Special Economic Zone and GAIL (India) during the period.

S&P Global Rating believes India's insurance industry is set for growth following the release of the federal budget for fiscal 2018-2019.  However, the exact pace of execution will define the Indian insurance industry's actual growth story.

Key proposals unveiled in the budget include a wide-reaching healthcare insurance scheme, an expansion in tax incentives for health insurance, and the merger of three public insurers. In our view, these and other initiatives reflect the government's intent to expand the country's protection umbrella, and could have far-reaching implications for the domestic insurance sector, the rating agency said.

Moody's Investors Service believes that the insurance market will benefit from the launch of a national health scheme and the merger, as well as listing, of three state-owned insurers. The insurance, and in particular non-life market, is set to benefit from the growth prospects provided by the widening of universal health insurance cover, the rating agency said in recent note.