General Insurance Corporation of India Ltd up by 8.39 percent | Espresso

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Espresso shot of the day – General Insurance Corporation of India Ltd up by 8.39 percent

March 31, 2021
Espresso shot of the day – General Insurance Corporation of India Ltd up by 8.39 percent

GENERAL INSURANCE CORPORATION OF INDIA LTD 199.55 (+8.39%)  BSE – INE481Y01014| 31STMARCH 2021

General Insurance Corporation of India Limited (GIC Re) was formed in pursuance of Section 9(1) of GIBNA. It was incorporated on 22 November 1972 under the Companies Act, 1956 as a private company limited by shares. GIC Re was formed for the purpose of superintending, controlling and carrying on the business of general insurance. As soon as GIC Re was formed, GOI transferred all the shares it held of the general insurance companies to GIC Re. Simultaneously, the nationalised undertakings were transferred to Indian insurance companies. After a process of mergers among Indian insurance companies, four companies were left as fully owned subsidiary companies of GIC Re -National Insurance Company Limited, The New India Assurance Company Limited, The Oriental Insurance Company Limited, United India Insurance Company Limited.

Recent Drivers

  • In the past one month, the stock of state-owned general insurance company has rallied 62 % on reports that the government is considering privatisation of United India Insurance and General Insurance Corporation of India Limited.
  • On February 1, Union Finance Minister Nirmala Sitharaman had announced big-ticket privatisation agenda of the government in the Budget 2021-22 which included selling two state-run banks, one general insurance company, seven major ports and the mega Life Insurance Corporation of India (LIC) public issue.
  • GIC Re, which is backed by the Indian government, is currently the only reinsurer operating in the country, and therefore enjoys the full extent of this 5% obligatory cession.
  • Devesh Srivastava, CMD of GIC Re, believes that speciality segments like liability will see a faster growth. He also expects segments like cyber insurance to see a strong growth going forward.
  • Narendra Modi government is bracing for a tough, second round of equity stake dilution in the two listed state-owned general insurance companies in the next fiscal, after dodging the process last year due to the pandemic.
(Sources: LiveMint, Business Standards, Reinsurance News, CNBC TV18,The print)

Technical Force*

  • S&P BSE ALL CAP month till date gain up by 1.19%
  • 3 months avg qty –1,18,938
  • Quantity traded 2,08,803 Deliverable quantity 71,837(34.40%)
  • Stock price has jumped more than 95% from one year low level – 102, 3 April 2020
  • Daily RSI(14) crossed central line today
  • 52 -week high –243.70 | 52- week low- 102

Key Pivot  (Yearly)

R4

R3

R2

R1

PP /FIB PP

S1

S2

S3

S4

Pivot Point

-

441.98

358.47

248.73

165.22

55.48

-

-

-

Fibonacci Pivot

358.47

284.65

239.04

209.66

165.22

120.77

91.40

45.79

-


Today’s Close

199.55

SMA

BSE

10 DAY

211.07

20 DAY

207.66

50 DAY

174.60

200 DAY

147.63

Some Key Ratios (Source: BSE)

Market Cap: 35,009.05 crores

PE: -

OPM%: -

ROE%: -

Promoters holding : 85.78

Prev. Close: 184.10

*Chart And Technical Force data taken from the Binge desktop app.

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Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.