LIC Cashes In on Market Decline

12 Nov 2024 , 11:55 AM

The largest domestic institutional investor in India, Life Insurance Corporation of India (LIC), decided to play it safe by lowering its holding in 103 stocks in the September quarter, despite the fact that mutual funds were still showing faith.

According to data from the PRIME Database, LIC’s ownership of NSE-listed companies dropped from 3.64% in the previous quarter to an all-time low of 3.59% as of September-end. Since the life insurer boosted its stake in 78 firms during the quarter while decreasing its stake in 103 companies, profit booking is the main reason for the decline in LIC’s ownership.

When just free float (non-promoter holding) is taken into account, the value of LIC shares decreased from 7.51% in the previous quarter to 7.34% in the second quarter. The LIC share dropped from 0.66 at the end of June to 0.64 at the end of September in terms of ownership by number of shares or share by volume.

Procter & Gamble Hygiene & Healthcare, Voltas, HDFC AMC, Lupin, Hero Moto, HPCL, Pfizer, OFFS, Tata Consumer Products, and Tata Power saw the most percentage declines in LIC’s holdings over the past quarter.

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