Shares of HDFC Life rallied over 5% to reach Wednesday's intraday high of ₹509.90.

What Happened: The stock had been plunging at the bourses after this year's budget brought unfavourable news for the entire sector. Finance Minister Nirmala Sitharaman announced in her budget speech that income from certain high-value insurances will now be taxable. 

Shares of the company were on a 4-day losing streak since the budget announcement and plunged to ₹474 at the BSE to hit a new 52-week low on Monday.

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However, brokerages have been optimistic about the stock. Analysts at KRChoksey and ICICI Securities maintained their ‘buy' rating after the life insurance giant announced its Q3 results two weeks back. 

ICICI Securities had a price target of ₹740, an over 45% upside from the stock's current market price. KRChoksey Research also had a ₹735 price target for the stock. 

The company also received support from Chennai-based certified financial planner D. Muthukrishnan, who said that he sees the stock as an easy ‘long-term holding' pick for investors. He further added that the recent downtrend in the stock driven by the budget announcements will be short-lived.

Price Action: Shares of HDFC Life were up 5.24% at ₹508.40 as the markets closed on Wednesday.

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