LIC has made a significant profit by investing in the stock market recently. LIC is the country’s largest institutional investor. That is, it invests the most in the market. It has made a profit at a time when Corona is at its top. In the last 6 months, it has earned as much profit from the stock market as in the same period last year.
Annual Investment Of Over Rs 2 Lakh Crore
LIC invests more than Rs 2 lakh crore annually. Of this, she does about 60 thousand crores in the stock market and the rest in debt, government securities (G-Sec) etc. The shareholding data shows that LIC has invested in the top companies of the country. It has invested in companies in the pharma and IT sectors during July-September. It invested in March when all these stocks were beaten.
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Money Is Also Invested In Banking Shares
It has also invested in some banking stocks. Banking shares are considered highly pressurized. But private sector banking stocks have given good returns recently. Statistics show that LIC increased its stake in Pharma shares to Lupine, Alchem Lab and Pfizer in the second quarter. These shares have risen more than 24% in the same period. It has also increased its stake in Emphasis in the IT sector from 1.96 to 2.11%. The stock has given a 56% return in the second quarter.
There Are Bets In The Auto Sector Too
In the auto sector, it has increased its stake in Amar Raja Batteries, Ashok Leyland, Bash, Exide Industries, Hero Moto Corp and TVS Motor Company. In the same week, rating agency Care Ratings said that there are signs of recovery in tractors, passenger vehicles and two-wheelers. It is believed that the auto mobile sector will grow well in the next two to four years. Companies in this sector can see very strong income.
Investments Made In Shares Of Private Sector Banks
Along with this, the top 3 banks in the private sector will also do better during this period. The banks whose shares were bought by LIC in the second quarter include SBI, HDFC Bank, HDFC, Kotak Mahindra Bank, Central Bank of India, IndusInd Bank, Yes Bank and Bandhan Bank.
Money Put In The Stock Of Yes Bank Also Going Through Bad Times
The most risky stock in the banking sector is Yes Bank. LIC has also increased its stake to 4.99% in August. This stake has been purchased from the open market. Analysts believe that in contrast to the environment, buying in stocks is a better idea. That is why LIC has made such a purchase. It is called Contra Investing. That is, to buy a stock when people are running away from it or the condition of that stock is not good.
Increased Stake In These Shares
Other stocks that LIC bought in the September quarter also included the oil sector. In this sector, it made purchases in Indian Oil, Power Grid, Oil India, ONGC, MOIL, Mahanagar Gas and Indraprastha Gas. However, the stake of LIC is slightly opposite here. All these stocks have fallen by 20% in a month. In metal, it has made purchases in JSW Steel and Steel Authority of India (SAIL). The shares of both of these also have fallen. However, HDFC Securities has said that JSW Steel’s share can go up to Rs 372.
Apart from these, the stocks in which LIC has bought include stocks like Bata India, Berger Paints, Titan, Ultratech Cement and Hindustan Unilever.
