The loss of investors in LIC’s stock continues
After listing, LIC had become the fifth largest company in the country by market value, currently it has slipped to the seventh place and the market value has decreased by more than Rs 1 lakh crore.
Today is the seventh day. when Life Insurance Corporation of India ,LIC) has seen a steady decline in the stock. LIC’s share on BSE has fallen by more than 3 per cent till 2 pm and the share (LIC Stock) reached its all-time low. So far, it has seen a decline of 20 percent in comparison to the issue price. With this fall, the market cap of LIC has come down to Rs 4.8 lakh crore. However, LIC still remains the seventh most valuable company in the country. LIC’s shares were listed on the stock market on May 17 and since then there have been only four sessions when its shares have risen. It closed in the red mark on all other days of selling pressure. Investors of LIC since entering the stock market (LIC Investor) have lost their capital of Rs 1.08 lakh crore so far. While the stock is reaching new lows
Analyst not very positive about stock
Most of the analysts are neutral on the counter of LIC and they do not see much growth potential in this stock. Global brokerage house Emkay Global has described LIC as an elephant that can never dance. The broker says that its size, its dominance in the industry and legacy are factors that will continue to hinder the company’s growth in future as well. When LIC was listed on the stock market, it became the fifth most valuable company in the country. On May 17, when LIC’s stock was listed at Rs 949, its market cap was Rs 6 lakh 242 crore. But now its market cap has come down to less than 5 lakh crores and it has slipped from number five to number seven. If we look at the IPO price band, LIC’s stock has broken more than 18 percent so far. The only good thing is that LIC still remains the top insurance company as compared to its listed competitors ICICI Prudential, HDFC Life, and SBI Life.
Foreign signals put pressure on the market
Vinod Nair, Research Head, Geojit Financial Services, says that the domestic market also opened weak like global markets today. Crude oil has come to a boil after Saudi Arabia’s announcement of raising the price of oil, which has further increased the current inflationary pressure. Better-than-expected US job data has raised concerns for Wall Street, as it will give the US federal more opportunity to raise interest rates. This volatility is likely to persist in both global and domestic markets, as investors across the world await decisions on monetary policy from major central banks, including the RBI.