LIC Shares Gain: Life Insurance Corporation (LIC) shares snapped their losing streak after 10-days on Tuesday after they rose 2 per cent on the back of higher volumes. LIC share price today opened with a downside gap but soon started ascending and went on to hit intraday high of Rs 684 levels, logging more than 1 per cent rise from its yesterday’s close price of Rs 668.25 on NSE. After closing at Rs 837.75 on NSE on May 30, 2022, LIC shares have been diving downwards till Monday, June 13. LIC stock hit an all-time low on Monday after the end of the lock-in period for anchor investors in the IPO.
The stock was listed on May 17 after Rs 21,000 crore initial public offering (IPO). Nearly Rs 1.7 lakh crore of investor wealth has been wiped out since listing. Since listing, LIC has declined 28 per cent from its issue price of Rs 949 a share.
Other life insurance firms have also fallen so far this year. SBI Life declined 6 per cent, HDFC Life 11 per cent, ICICI Prudential Life 5 per cent, and Max Financial Services Ltd 17 per cent.
What Should Investors Sell or Hold LIC Shares?
According to stock market experts, one can accumulate LIC shares at current levels as the stock is available at an attractive valuation but the time horizon for accumulation has to be long-term.
Manoj Dalmia Founder and Director-Proficient Equities Limited said: “LIC made slight gains, this must be due to some buying happening but don’t consider this as a trend reversal and buy immediately and wait for some consolidation to take place, those who have to hold for a longer period may remain to hold as it won’t make sense selling now and booking loss, one thing can be done is average more on a consolidation.”
Ravi Singh, vice president and head of research, Share India, said: “LIC share prices may drop further till 700 levels and investors are advised earlier to exit their positions and wait for the turnaround of the sentiments. The high-risk appetite investors may hold their positions. It is expected that in the long run, the business metrics of LIC will improve steadily. Investment done at lower levels will deliver good returns in the long term.”
Last week, the government had said it is ‘concerned’ about the temporary dip in the insurance giant’s stock price and assured that the insurer’s management will look into these aspects and raise shareholders’ value.
“We are very concerned about the temporary blip in LIC share price. People will take time to understand (the fundamentals of) LIC. LIC management will look into all these aspects and will raise the shareholders’ value,” said DIPAM secretary Tuhin Kanta Pandey.
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