LIC was busy selling these stocks in last 6 months

  • Jan-31-2019

Life Insurance Corp (LIC), the country’s biggest institutional investor in Indian stock market has increased its stake in 8 stocks, however it has decreased its stake in 14 companies in the last six months.

Buy vs Sell

As per the published report in NSE, Life Insurance Corporation of India has bought stocks in open market on the following companies.

Last 6 months Stocks bought by LIC

The following are the list of companies that LIC increased its stake

ASIANPAINT
BPCL
CASTROLIND
GDL
IBULHSGFIN
IGL
POWERGRID
YESBANK

At the same time, LIC booked a massive profits by selling/decreasing its stake in the following companies. On an average, it liquidated 2% stake holdings in most of these companies, however stake sold in HindCopper, Bank of Baroda and Indian Hotel are higher than average.

LIC mostly invests in blue-chip stocks. With an expected correction in the equity markets, it has booked profits by selling a part of its large holdings. It has sold stocks that have already generated significant returns.
LIC’s profits have been increasing. It booked a profit of Rs 25,000 crore by selling equities in the last financial year. It had earned Rs 19,000 crore profit in 2016–17, and Rs 11,000 crore a year earlier.
Investment gains at the insurance behemoth have beaten returns on the Sensex of late.

LIC selling a part of its holdings, could imply that it wants to sit on cash rather than holding these stocks, it could be a major move by LIC to liquidate much before the larger correction. So that when the correction happens, it can pump in tons of money to buy back the shares at a cheaper price.

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Source: www.nseindia.comhttps://economictimes.indiatimes.com/markets/stocks/news/lic-sells-equity-holdings-worth-rs-12000-crore/articleshow/64912957.cms?utm_source=quora&utm_medium=referral

  • Tags | India,Stock Market,Stocks,Investment,Finance