The government is reportedly considering reducing GST rates for the insurance sector, a long-standing demand across categories, especially in healthcare insurance. However, despite this seemingly positive news, insurance stocks like HDFC Life, SBI Life, and LIC are trading lower. Gaurav Dua, Head of Capital Market Strategy at Sharekhan, shares his insights, highlighting that while reducing GST is a step in the right direction, market reactions suggest that this move was already anticipated. Additionally, low penetration levels in the sector and the current GST rate have long been points of contention. Watch to understand why the sector isn't celebrating and what this means for investors.
