Budget 2026: Insurance Sector in Focus, LIC and Other Stocks to Watch

• Investors are keenly watching insurance sector stocks ahead of Finance Minister Nirmala Sitharaman's 9th Union Budget.
• Potential reforms include expanding Section 80CCD to cover life insurance pension schemes or introducing a separate tax deduction for term insurance.
• HDFC Life, SBI Life, ICICI Prudential Life, Max Financial Services, and LIC could benefit from favorable announcements.
• General insurance stocks like Star Health, Niva Bupa, ICICI Lombard, and New India Assurance may see activity if Section 80D limits increase or medical insurance is included in the new tax system.
• Promotion of the new tax system without insurance exemptions could negatively impact the entire sector, putting pressure on major insurance stocks.

Why It Matters: Budget 2026 could significantly impact insurance stocks based on tax deduction changes and new tax regime promotion.