Short Call | Insurance still an unloved sector; focus on Oberoi Realty, Doms, GSPL, Patel Engg
The insurance sector is struggling to attract investors despite its importance to the economy. Tepid numbers in the March quarter could further discourage investors, dampening stock market returns. The non-life insurance industry saw a moderated growth in gross written premiums, with health insurance as the largest driver. Kotak Institutional Equities is positive about the health opportunity in India and anticipates developing competition in motor and commercial lines. In contrast, Antique is more bullish on life insurance companies with receding regulatory risks and attractive valuations.