NEW DELHI: Bajaj Allianz Life Insurance coverage Co. is drawing down its money pile to load up Indian shares on a wager that the fairness market rout will backside out quickly.
The insurer, with property of about $11 billion, has reduce its money ranges by 300 foundation factors within the final three months and can deploy the remaining reserves within the coming months, Sampath Reddy, chief funding officer at Bajaj Allianz, stated in an interview.
The NSE Nifty 50 Index has slipped practically 14% from its all-time excessive touched in October as inflation, tightening financial coverage and protracted promoting by foreigners weighed on sentiment. The insurer is utilizing the rout to purchase development shares at affordable valuations and enormous non-public sector banks with out dangerous mortgage woes, in accordance with the chief funding officer.
“Over the subsequent few months, a big a part of the speed will increase, each in India and the US, might be behind us. Put up that, tempo and quantum of charge will increase might be milder, and we might even see fairness markets bottoming out,” Reddy stated.