New Delhi: Bajaj Allianz Life Insurance Company Indian is reducing its cash pile to load the stocks on the condition that the equity market route will end soon.
Sampath Reddy, chief investment officer at Bajaj Allianz, said in an interview that the insurer, with assets of around $11 billion, has cut its cash levels by 300 basis points over the past three months and will deploy the remaining reserves in the coming months.
NSE nifty 50 index Inflation, tighter monetary policy and continued selling by foreigners has slipped nearly 14% from its all-time high in October. According to the chief investment officer, the insurer is using the route to buy growth shares at fair valuations and without bad credit crunch to large private sector banks.
“Over the next few months, a significant portion of the rate hike will be behind us in both India and the US. After that, the pace and volume of rate hikes will be modest, and we may see equity markets going down,” Reddy said.
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