The possession of Life Insurance coverage Company (LIC) in listed Indian corporations touched a document low of three.88 per cent within the quarter ended March 2020. LIC’s fairness possession was the best on June 30, 2012 at 5 per cent. The coronavirus-related inventory market sell-off resulted within the worth of investments falling by greater than Rs 1.7 lakh in the course of the interval, information by nseinfobase.com confirmed.
The worth of fairness holdings of the general public insurer (throughout 289 NSE-listed corporations the place its holding is greater than 1 per cent) plunged from Rs 6.04 lakh crore as on December 31 to Rs four.24 lakh crore as on March 31, a lower of 29.38 per cent. NTPC, IGL, NHPC, Tata Chemical compounds, Bajaj Auto, Financial institution of India, Titan, Bharti Airtel, Canara Financial institution are a few of the corporations that represent LIC’s fairness portfolio.
“LIC’s possession in listed corporations declined within the fourth quarter of FY20 on account of coronavirus-related dump. Shares in LIC’s portfolio noticed a steeper fall than these held by mutual funds,” Pranav Haldea, MD, Prime Database Group, instructed BusinessToday.In.
The holding of home mutual funds in corporations listed on NSE hit an all-time excessive of seven.97 per cent by worth on March 31, 2020 up from 7.79 per cent on December 31, 2019, the information additionally confirmed. On account of a rise in holdings of mutual funds, holding of home institutional buyers (DII), together with home mutual funds, insurance coverage corporations, banks, amongst others, additionally surged to a document excessive of 14.39 per cent by worth on March 31 as in opposition to 14.06 per cent within the final quarter.
Nevertheless, the holdings of international portfolio buyers (FPIs) declined from 20.24 per cent by worth on December 31 in comparison with 19.12 per cent on March 31, 2020.
LIC is the nation’s largest insurer, controlling greater than 70 per cent of the market share. The insurer has a market share of 76.28 per cent in variety of insurance policies and 71 per cent in first-year premiums. LIC has many subsidiaries. Within the price range 2020-21, Finance Minister Nirmala Sitharaman had introduced that the federal government is seeking to promote stake within the public sector insurer through an preliminary public providing (IPO) throughout FY21. The federal government at the moment owns 100 per cent in LIC.
Itemizing of Life Insurance coverage Company (LIC) could also be delayed as a result of weak market scenario amid the continued coronavirus disaster, information company PTI had lately reported. The federal government might at the moment discover it difficult to promote stake as a result of muted market valuation and the identical could also be delayed past March 2021.
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