Niva Bupa Health Insurance share price dips after positive debut. Buy, sell or hold? | Stock Market News

Stock market today: Niva Bupa Health Insurance shares listed at around a 5 per cent premium, but the newly listed stock failed to sustain itself at higher levels. Niva Bupa Health Insurance share price opened on the BSE at ₹78.50 apiece and touched an intraday high of ₹80.94 apiece. Likewise, Niva Bupa Health Insurance’s share opened on the NSE at ₹78.14 per share and touched an intraday high of ₹81 apiece within a few minutes of stock debut. However, the stock failed to sustain at higher levels and touched an intraday low of ₹73.51 per share on the NSE and ₹73.60 apiece on the BSE.

According to stock market experts, medium—to long-term investors may consider holding the scrip, but they must remain vigilant about the company’s performance. They said that the interpenetration of health insurance and the rising middle class could sustain the companies’ future growth, and the strong parent backing has aided the company in becoming well-placed to grow faster in the sector.

Niva Bupa Health Insurance share price outlook

Speaking on the Niva Bupa Health Insurance share price listing, Prashanth Tapse, Senior VP — Equities at Mehta Equities, said, “Niva Bupa listing is in line with our expectation considering subscription demand and followed by subdued market sentiments. The fastest-growing company in the sector received a decent demand from retail investors, which was 2.88x. Investors believe that Niva Bupa is strategically positioned to capitalize on India’s growing health insurance market with growing consumer awareness, constant medical inflation, and demand for quality healthcare, which would benefit the company’s business growth. We also believe the underpenetration of health insurance and the rising middle class can sustain the company’s future growth. The strong parent-backing has aided the company in getting well placed and growing faster in the sector.”

On the suggestion to Niva Bupa Health Insurance shareholders and fresh investors, Shivani Nyati, Head of Wealth at Swastika Investment, said, “Investors who participated in the IPO can consider holding their shares, but should closely monitor the company’s performance and the broader market conditions. New investors may wait for a clearer picture of the company’s future trajectory before investing.”

“We recommend allotted investors to HOLD IT FOR LONG TERM despite knowing the sector’s short-term market volatility and competitive pressures. For non-allottees, we advise accumulating if the listing is around the issue price and buying more on dips for the long term,” said Prashanth Tapse of Mehta Equities.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.