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Insurance
30-Jul-19
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Max Life Insurance cash levels hit two-year high as mood in stock market sours
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Max Life Insurance Co. raised its cash levels to the highest since November 2016 as the nation's stocks head for their worst month since October.
The insurer is holding about 10% of its assets in cash, a five-fold jump over levels it usually maintains, as it doesn't expect a turnaround in sentiment anytime soon, according to Chief Investment Officer Mihir Vora.
“We are not taking big calls on equities,” Vora, who helps oversee about 640 billion rupees ($9.3 billion), said in a release. “We are keeping a bit more cash than usual.
”
Indian equity indexes have slid 6.4% from their record closes in June as tepid earnings and disappointment over lack of stimulus to prop up the economy in the budget plan prompted foreigners to yank more than $1.5 billion from shares this month. The declines crimped the premium the nation's shares enjoy over their emerging-nation peers to the smallest since last April.
“In terms of growth expectations, the delta between India and the developing markets has reduced in the last few months,” Vora said. “We don't think an instant U-turn is expected at this moment” on withdrawals by foreign funds, he said.
Still, the gloom hanging over Indian equities is not without a silver lining. The three interest-rate cuts by the central bank this year, and expectations of more to come, will help kick-start growth and lure investors, Vora said.
“The way interest rates and liquidity conditions are being addressed in India, sooner rather than later, we will see foreign investment cycle turn,” he said. “Corporates aren't investing more, so the deleveraging and lower interest rates should help drive profits. Whether it takes one quarter or two can be debated.”
A rebound in small and mid-sized companies may emerge by the festival season starting in two months, when consumer spending often picks up, he said. “Hopefully, the second half of the year would be better.”
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Previous News |
Max Life Insurance Company standalone net profit rises 273.21% in the September 2023 quarter
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Board of Axis Bank approves acquisition of 29% stake in Max Life
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Axis Bank to buy 29% stake in Max Life Insurance, raise its total to 30%
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Max Financial receives IRDAI approval to divest up to 12% stake in Max Life
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Board of Max Financial Services approves sale of 29% stake in Max Life to Axis Bank
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28-Apr-20
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Max Life to pay penalty of Rs 3 cr imposed by IRDAI
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Outcome of board meeting of Max Financial Services
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Max Life Insurance becomes first life insurer to adopt Account Aggregator system
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Max Life Insurance Company standalone net profit rises 14.07% in the June 2023 quarter
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Max Financial Services acquires balance 5.17% stake in Max Life
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