HDFC Life Shares Rise As GST Cut Makes Insurance Cheaper; SEBI Analyst Sees Nearly 10% Upside Potential

The analyst highlighted strong technical momentum for HDFC Life, pointing to support near ₹760–770 and potential upside toward ₹850.

Shares of HDFC Life Insurance rose on Friday on renewed optimism that the insurer will switch to the new, lower GST regime on individual life insurance products from Sept. 22.

The company said the change will make policies more affordable and boost new policy sales. It added that the reform will support the value of new business (VNB) growth, with only a minor 0.5% impact on embedded value.

Insurance policies are set to become cheaper with the reduction in the GST rate, which will increase the demand for life and health insurance.

Analyst View

SEBI-registered analyst Deepak Pal said HDFC Life is showing bullish technical signs. The stock is holding above its 14-day and 55-day exponential moving averages (EMAs), a positive momentum indicator.

He pegged support around ₹760–770 and resistance near ₹800–815. If the stock sustains above these levels, Pal said it could move toward ₹840–850. 

He also noted that the Relative Strength Index (RSI) is around 56, showing the stock isn’t overbought, while the Parabolic SAR has turned supportive, signaling potential for further gains.

On the fundamentals, HDFC Life’s earnings last quarter were in-line with expectations. It has a return on equity (ROE) of 11% and a debt-equity ratio of 0.17.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘neutral’ amid ‘normal’ message volume.

HDFC Life Insurance’s stock has risen 27.5% so far in 2025.

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