** The sharp uptick in shares of India's public-sector insurance stocks, especially New India Assurance Company

, over the past month is not justified, says Haitong International

** Says the rise in insurance stocks could be due to general sectoral allocation in financials moving from lending to non-lending sectors like insurance, after Reserve Bank of India's move to increase risk-weights for unsecured lending on Nov. 16

** Adds curent valuations of THEE are expensive, while the earnings in the September quarter were weaker than the industry peers

** Haitong adds there has not been any fundamental material positive driving the surge in shares

** THEE's quarterly results were affected due to losses on account of floods amounting to 3 bln rupees in second quarter

** Reiterates "Underperform", but hikes target price to 156 rupees from 110 rupees to account for recent rally in shares

** THEE shares up 68% since the end of October; Life Insurance Corporation of India and General Insurance Corporation of India jump 37% and 32% over the period

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(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))