Amidst the ongoing hide-and-seek game between the Bulls and the Bears, LIC has been able to avert the severe impact that ensues from bearish market trends on its investments in Sensex blue-chip firms.
India’s largest life insurer, Life Insurance Corporation of India (LIC), has clocked a profit of Rs.11,000 crore through equity investment in FY16, reported PTI.
LIC’s executive director for investment operations, Pravin Kutumbe was quoted as saying: “We saw some profit booking opportunities during the fiscal and have made a profit of Rs.11,000 crore through our equity investments in the recently concluded financial year.”
The DII biggie pumped in Rs.2.70 lakh crore in Indian securities markets, of which, Rs.65,000 crore was invested in equities.
Volatility in the markets towards the latter part of 2015-16 led to the company exceeding its equity investments target of Rs.60,000 crore announced earlier.
Kutumbe said that having announced a target of investing up to Rs.1.5 lakh crore to help the Railways, LIC has loaned Rs.7,000 crore to the Railways in 2015-16 for scaling up.
During the fiscal, the Sensex corrected nearly 10%.
The investment pattern of Life Insurance Corporation of India (LIC) in as many as 23 Sensex companies between December 2014 to December 2015 somehow reflects the billionaire investor’s famous advice on: “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
Amidst the ongoing hide-and-seek game between the Bulls and the Bears, LIC has been able to avert the severe impact that ensues from bearish market trends on its investments in Sensex blue-chip firms.
During the aforesaid period, India’s largest life insurer has increased its shareholding in 13 Sensex firms. However, this DIIs biggie trimmed its exposure in 9 firms from the Sensex pack.
LIC’s combined shareholding value in 23 Sensex heavyweights has come down 3.3% to Rs.1,79,772.31 crore as on March 9, 2016 from Rs.1,85,925.02 crore on December 31, 2014. It is pertinent to note that of this 23 Sensex firms 16 stocks have crashed between 2-59%, but still the intensity of fall in combined shareholding value is not alarming, especially when the Indian stock markets have entered the bearish phase.
LIC's shareholding in 23 Sensex firms
LIC’s executive director for investment operations, Pravin Kutumbe was quoted as saying: “We saw some profit booking opportunities during the fiscal and have made a profit of Rs.11,000 crore through our equity investments in the recently concluded financial year.”
The DII biggie pumped in Rs.2.70 lakh crore in Indian securities markets, of which, Rs.65,000 crore was invested in equities.
Volatility in the markets towards the latter part of 2015-16 led to the company exceeding its equity investments target of Rs.60,000 crore announced earlier.
Kutumbe said that having announced a target of investing up to Rs.1.5 lakh crore to help the Railways, LIC has loaned Rs.7,000 crore to the Railways in 2015-16 for scaling up.
During the fiscal, the Sensex corrected nearly 10%.
The investment pattern of Life Insurance Corporation of India (LIC) in as many as 23 Sensex companies between December 2014 to December 2015 somehow reflects the billionaire investor’s famous advice on: “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
Amidst the ongoing hide-and-seek game between the Bulls and the Bears, LIC has been able to avert the severe impact that ensues from bearish market trends on its investments in Sensex blue-chip firms.
During the aforesaid period, India’s largest life insurer has increased its shareholding in 13 Sensex firms. However, this DIIs biggie trimmed its exposure in 9 firms from the Sensex pack.
LIC’s combined shareholding value in 23 Sensex heavyweights has come down 3.3% to Rs.1,79,772.31 crore as on March 9, 2016 from Rs.1,85,925.02 crore on December 31, 2014. It is pertinent to note that of this 23 Sensex firms 16 stocks have crashed between 2-59%, but still the intensity of fall in combined shareholding value is not alarming, especially when the Indian stock markets have entered the bearish phase.
LIC's shareholding in 23 Sensex firms
| Company | As on Dec-2014 (%) | As on Dec-2015 (%) | Change in Percentage points |
| Hero MotoCorp | 2.13 | 5.43 | 3.30 |
| Tata Motors | 3.28 | 6.25 | 2.97 |
| Sun Pharma | 1.35 | 3.36 | 2.01 |
| Adani Ports | 1.45 | 3.28 | 1.83 |
| HUL | 0.00 | 1.55 | 1.55 |
| M&M | 12.31 | 13.53 | 1.22 |
| Infosys | 4.69 | 5.59 | 0.90 |
| RIL | 8.67 | 9.40 | 0.73 |
| ONGC | 7.70 | 8.36 | 0.66 |
| Bajaj Auto | 4.82 | 5.26 | 0.44 |
| TCS | 2.43 | 2.78 | 0.35 |
| NTPC | 9.68 | 10.03 | 0.35 |
| Wipro | 1.70 | 1.89 | 0.19 |
| Tata Steel | 14.59 | 14.59 | 0.00 |
| Asian Paints | 5.53 | 5.37 | -0.16 |
| Bharti Airtel | 4.79 | 4.62 | -0.17 |
| SBI | 12.26 | 11.50 | -0.76 |
| Maruti Suzuki | 6.77 | 6.01 | -0.76 |
| HDFC Bank | 3.45 | 2.65 | -0.80 |
| Coal India | 7.24 | 5.86 | -1.38 |
| Cipla | 6.67 | 5.26 | -1.41 |
| BHEL | 9.42 | 4.89 | -4.53 |
| GAIL | 7.45 | 2.20 | -5.25 |
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