LIC's Stake in India Inc Hits Record Low

8 Feb 2024 , 11:10 AM

‘India Bull’ Life Insurance Corporation of India, or LIC, appears to have taken advantage of the stock market boom to record gains, as the PSU’s stake in India Inc has dropped to an all-time low of 3.64%.

According to PRIME Database statistics, LIC’s value share in NSE-listed businesses fell to 3.64% as of December 31, 2023, from 3.73% as of September 30, 2023, although the holding increased 11% to ₹13 Lakh Crore.

According to PRIME’s Pranav Haldea, insurance firms sold a net of ₹15,622 Crore during the quarter, with LIC accounting for the lion’s share of stocks investments (at least 68% share or ₹13.02 Lakh Crore).

In terms of value, LIC’s top bets include RIL (worth over ₹1 Lakh Crore), ITC, TCS, HDFC Bank, Infosys, L&T, IDBI Bank, SBI, ICICI Bank, and HUL.

During the quarter, the percentage of domestic institutional investors, or DIIs, fell slightly to 15.96% from 15.99% the previous quarter, while the share of FIIs fell 21 basis points to 18.19% despite net inflows of Rs 50,588 crore from FIIs in Q3.

The difference between FIIs and DIIs has narrowed, and desi lads are projected to become the kings of Dalal Street even as dollar money continues to flow into India. The difference between FII and DII holdings dropped further to an all-time low this quarter, with DII holdings currently only 12.23% lower than FII holdings, according to the PRIME report.

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