LIC stock falls for second straight session, what should investors do?
LIC stock has fallen 4.54 per cent in two sessions. The stock, which closed at Rs 690.45 on June 15, fell to Rs 659.05 on BSE today.
- Jun 17, 2022,
- Updated Jun 17, 2022 11:00 AM IST
Shares of Life Insurance Corporation (LIC) have turned red in the last two sessions with the market turning highly volatile due to negative global cues. LIC stock has fallen 4.54 per cent in two sessions on BSE. The stock, which closed at Rs 690.45 on June 15, fell to Rs 659.05 on BSE today.
It had ended in the red for 10 consecutive sessions preceding June 14 ahead of the end of the anchor investor lock-in period. However, the large-cap stock rose for two straight sessions gaining 3.32 per cent after the lock-in period ended on June 13. The brief gaining streak was broken by high volatility and the board sell-off in the market yesterday.
ALSO READ: Why Sensex tanked 1,700 points from day's high today
On Thursday, the stock ended 3.08 percent lower at Rs 669.20 against the previous close of Rs 690.45.
In the current session, the stock fell 2.37 per cent or Rs 15.9 intraday to Rs 653.30 amid negative global cues for the broader market. The market capitalisation of the public sector insurer fell to Rs 4.14 lakh crore today. A total of 1.30 lakh shares of the firm changed hands amounting to a turnover of Rs 8.58 crore on BSE.
On NSE, the stock was trading 2.05 per cent lower at Rs 655.65. It fell 2.36 per cent intraday to Rs 653.50. A total of 15.19 lakh shares of the firm changed hands amounting to a turnover of Rs 99.64 crore on NSE.
ALSO READ: LIC stock rises for two sessions after anchor investor lock-in ends
The lock-in period, which ended on June 13, allowed anchor investors to offload their stake in the market. The stock closed at Rs 668.2 in the same session, down Rs 709.7 or 5.84 per cent on BSE.
BT spoke to analysts about the recent gains the stock made and the outlook for the same in a volatile market.
Ravi Singh, Vice President and Head of Research, Share India
"LIC stock is witnessing short coverings and made slight gains. However, this is not a trend reversal and investors must wait for consolidation in stock before entering any fresh positions. The high-risk appetite investors may hold their positions. LIC business metrics are good and the stock will give good returns on investment at lower levels. The momentary pullback in LIC can touch the levels of Rs 720 but is staking not sustainable. The stock looks attractive for value buying around Rs 650 - Rs 620 levels only, for long term."
Manoj Dalmia, Founder, and Director, Proficient Equities
"LIC made slight gains, this must be due to some buying happening. But one should not consider this as a trend reversal and buy immediately. Instead, 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 to sell now and book loss. One thing that can be done is to average out more on a consolidation. The future prospects are bright in the long term. Currently, it is suffering some setbacks due to macro scenarios which can be a good opportunity to accumulate in a timely manner."
LIC stock made a tepid market debut on May 17, opening at a discount of 8.62 per cent against the IPO issue price. The company offered its stock in a price band of Rs 902- Rs 949. It was listed at Rs 867.20 on BSE. On NSE, the stock was listed at Rs 872, 8.11 per cent lower than the IPO price.
Shares of Life Insurance Corporation (LIC) have turned red in the last two sessions with the market turning highly volatile due to negative global cues. LIC stock has fallen 4.54 per cent in two sessions on BSE. The stock, which closed at Rs 690.45 on June 15, fell to Rs 659.05 on BSE today.
It had ended in the red for 10 consecutive sessions preceding June 14 ahead of the end of the anchor investor lock-in period. However, the large-cap stock rose for two straight sessions gaining 3.32 per cent after the lock-in period ended on June 13. The brief gaining streak was broken by high volatility and the board sell-off in the market yesterday.
ALSO READ: Why Sensex tanked 1,700 points from day's high today
On Thursday, the stock ended 3.08 percent lower at Rs 669.20 against the previous close of Rs 690.45.
In the current session, the stock fell 2.37 per cent or Rs 15.9 intraday to Rs 653.30 amid negative global cues for the broader market. The market capitalisation of the public sector insurer fell to Rs 4.14 lakh crore today. A total of 1.30 lakh shares of the firm changed hands amounting to a turnover of Rs 8.58 crore on BSE.
On NSE, the stock was trading 2.05 per cent lower at Rs 655.65. It fell 2.36 per cent intraday to Rs 653.50. A total of 15.19 lakh shares of the firm changed hands amounting to a turnover of Rs 99.64 crore on NSE.
ALSO READ: LIC stock rises for two sessions after anchor investor lock-in ends
The lock-in period, which ended on June 13, allowed anchor investors to offload their stake in the market. The stock closed at Rs 668.2 in the same session, down Rs 709.7 or 5.84 per cent on BSE.
BT spoke to analysts about the recent gains the stock made and the outlook for the same in a volatile market.
Ravi Singh, Vice President and Head of Research, Share India
"LIC stock is witnessing short coverings and made slight gains. However, this is not a trend reversal and investors must wait for consolidation in stock before entering any fresh positions. The high-risk appetite investors may hold their positions. LIC business metrics are good and the stock will give good returns on investment at lower levels. The momentary pullback in LIC can touch the levels of Rs 720 but is staking not sustainable. The stock looks attractive for value buying around Rs 650 - Rs 620 levels only, for long term."
Manoj Dalmia, Founder, and Director, Proficient Equities
"LIC made slight gains, this must be due to some buying happening. But one should not consider this as a trend reversal and buy immediately. Instead, 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 to sell now and book loss. One thing that can be done is to average out more on a consolidation. The future prospects are bright in the long term. Currently, it is suffering some setbacks due to macro scenarios which can be a good opportunity to accumulate in a timely manner."
LIC stock made a tepid market debut on May 17, opening at a discount of 8.62 per cent against the IPO issue price. The company offered its stock in a price band of Rs 902- Rs 949. It was listed at Rs 867.20 on BSE. On NSE, the stock was listed at Rs 872, 8.11 per cent lower than the IPO price.