Max Financial share price surges over 4 pct even as Axis Bank slips 2 pct on strategic partnership

Max Financial Services share price jumped over 4 per cent on Monday while Axis Bank share price declined over 2 per cent in morning trade. The shares of Max Financial were trading at Rs 590 at 11:45 am and were up by 4.43% while those of Axis Bank were down 1.4% trading at Rs 733 on the Sensex. 

Both Max Financial Services and Axis Bank share prices came on investors' radar after they entered into a confidentiality and exclusivity arrangement to explore a long-term strategic partnership. 
Both the stocks have seen some activity as a result of the announcement according to Zee Business market expert Nilesh Jain of Anand Rathi Securities. 

In an exchange filing on 20 February, Max Financial announced that the that its the Board of Directors had approved entering into a confidentiality and exclusivity arrangement with Axis Bank Limited to explore a long-term strategic partnership, subject to inter alia receipt of applicable regulatory approvals and corporate authorisations, satisfactory completion of due diligence, and execution of definitive documentation. The meeting took place on the same day, the company said.

Jain said that the strategic partnership is likely to benefit Max Financial more and which is why the stocks have generated interest. He, however, told investors to adopt a wait and watch strategy for the stock. Jain puts the target price for the stock at Rs 650.

For Axis Bank share price, Jain said that it could attain a high of Rs 760 while putting the stop loss between Rs 700-707. His told investors is to buy the stock when it reaches around  Rs 700-707 mark.

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Max Financial Services presently holds a 72.5 per cent stake in Max Life while Mitsui Sumitomo Insurance and Axis Bank hold 25.5 percent and 2 per cent stake, respectively. Max Life is currently the largest non-bank owned private life insurer in India, the company's claims in the exchange filing.