Giving opinion on LIFE INSURANCE, Jefferies said that the proposal given in the budget on the insurance sector will affect the sale of insurance products. It is necessary to clarify whether the proceeds will be taxed or only the gains will be taxed. It is also necessary to clear whether Indexation Benefit will be available or not.
To promote the new tax regime in Budget 2023 , it was announced that life insurance policies issued on or after April 1, 2023, whose total premium is more than Rs 5 lakh, only income from such policies Will be exempted from tax. However, ULIP policies are not included in this. But experts in the insurance sector say that this decision of the government canprove to be a setback for the insurance sector . He says that many taxpayersbuy insurance policies only to avail the deduction under Section 80C . But due to non-availability of this, there is a possibility of further impact on the business of insurance companies.
Insurance stocks saw a sharp fall on Budget Day yesterday when it was announced. Due to which up to 14 percent weakness was seen in the stocks of the insurance sector. Now let’s know what is the view of brokerage houses on these stocks today-
MS ON LIFE INSURANCE
Giving an opinion on life insurance, Morgan Stanley has said that the impact of business growth from HNIs can be seen from the budget proposal. Tax has been announced on the income from insurance. Due to this, HNIs will get limited benefit on the earning from insurance. FY24 APE and VNB growth estimates may get impacted.
JEFFERIES ON LIFE INSURANCE
Giving opinion on life insurance, Jefferies said that the proposal given in the budget on the insurance sector will show the effect of the sale of insurance products. It needs to be clarified whether the profits will be taxed or only the gains will be taxed. Along with this it should be cleared whether Indexation Benefit will be available or not. Stocks can come down from the overhang on this.
CLSA ON INSURANCE
Commenting on the insurance sector, CLS said that they have reduced the coverage of life insurance to 25-35%. Along with this, he has reduced his ratings on all the insurance stocks.
CLSA ON HDFC Life
CLSA has downgraded the rating on HDFC Life to sell.
CLSA ON Max Financials
CLSA has downgraded the rating on Max Financials from buy to underperform rating.
CLSA ON ICICI Pru
CLSA has downgraded ICICI Pru to outperform from buy.
CLSA ON SBI Life
CLSA has downgraded SBI Life to outperform from buy.
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