Max Financial Services Falls 13% as ₹1,425 Support Breaks

Max Financial Services fell nearly 13% intraday to ₹1,360.10, hitting a fresh 52-week low, before settling 9.78% lower. IRDAI proposals, rising US yields and oil prices weigh on the stock. Max Financial Services (

), the holding company for Max Life Insurance, came under heavy selling pressure on September 24. The stock fell nearly 13% intraday to ₹1,360.10, marking a fresh 52-week low, before recovering slightly and settling 9.78% lower. The primary catalyst was the IRDAI’s proposed overhaul of insurance distribution economics. The regulator’s consultation paper, released on September 23, proposes changes to commission structures, distribution costs and market practices. The proposals triggered selling in insurance-related stocks as investors assessed their potential impact on profitability. Broader market concerns also added pressure, with rising US Treasury yields and elevated oil prices weighing on investor sentiment and raising concerns about foreign portfolio flows. From a technical perspective, the ₹1,425 level, which had earlier served as a major support zone, has now been broken and could turn into an important resistance level during any recovery. While MFSL recovered somewhat from its intraday low, the 9.78% closing decline shows that regulatory concerns have hit sentiment hard. Investors will now watch whether the stock can reclaim ₹1,425 or whether the fresh 52-week low faces further selling.