PM Modi gives share market advice: ‘Invest in PSUs that Opposition condemns, look at HAL, LIC’

PM Modi in No Confidence Motion statement: Replying to the debate on No-Confidence Motion in Lok Sabha, PM Narendra Modi on Thursday said in jest that stock market investors should invest in PSUs such as HAL, LIC, which were criticised by the Opposition in the past. 

Speaking about LIC's mega IPO and listing, Modi said, "They said many things about LIC that the money of the poor will sink but today LIC is getting stronger."

"Share market vale logo ke liye yeh mantra hai ki jis bhi sarkari company ko yeh gaali de usme daanv laga do acha hi hone vala hai," he quipped.

 

He added that defence minister Rajnath Singh also spoke about Hindustan Aeronautics Limited (HAL), saying that the Opposition had falsely claimed that HAL has been destroyed.

"The workers of HAL were instigated that they will lose their jobs. Today HAL is touching the new heights of success. It has registered its highest ever revenues this year," Modi said in Lok Sabha during the no-confidence motion speech.

"All the organisations of the country that are declared dead by these people, those organisations get lucky. The manner in which they curse the country and democracy, I am confident that the country and democracy are going to get stronger. We too are going to be stronger," Modi stated.

Earlier, Modi attacked the Opposition for not letting discussion take place on a number of bills related to the country's development, saying they have shown that the party is bigger than the country for them. 

Last month, MoS IT Rajeev Chandrasekhar criticised Congress leader Rahul Gandhi for his comments against HAL. The minister said that Gandhi used 'lies' to distract and mislead people, based upon the Congress leader's 2019 statement which had claimed that HAL was going to go sick.

In 2019, Gandhi claimed that the Modi government has weakened the state-run aerospace major and destroyed India’s strategic capability to benefit Anil Ambani.

In January, the Congress had launched a scathing attack on the BJP-led government after US short seller Hindenburg Research, in its report, accused Adani Group of using offshore companies to manipulate their share prices. The short-seller also flagged concerns about high debt, eroding $11 billion in investor wealth.

The Opposition had also raised concerns over LIC’s exposure to Adani Group companies. On February 7, the Centre said the state-owned insurer had stressed that it strictly follows the statutory framework and regulations while making investments.

In January, LIC said it has investments of Rs 35,917.31 crore in Adani Group’s debt and equity securities. The amount is 0.975% of the insurer’s total assets under management of more than Rs 41.66 lakh crore.

The total purchase value of equity, purchased over the last many years, under all the Adani Group companies is Rs 30,127 crore and the market value for the same as at close of market hours on January 27, 2023, was Rs 56,142 crore, LIC said in a statement.

“LIC has informed that all investments of LIC are carried out strictly as per the statutory framework of the Insurance Act, 1938 and the IRDAI Investment Regulations, 2016 and are guided by a detailed governance mechanism,” Minister of State for Finance Bhagwat Karad had told the Rajya Sabha in a written reply on February 7.

Later in May, the state-owned insurer said the value of its investment in the Adani Group rebounded by more than half since the post-Hindenburg lows. On May 24, the combined value of the insurer's holdings in Adani stocks stood at Rs 44,750 crore, which was Rs 18,400 crore more from the lowest they fell to after the short seller's allegations.

Till the end of Q4 FY23, the insurance behemoth held 1.36 per cent stake in Adani Green Energy, 3.68 per cent stake in Adani Transmission. It had 6.02 per cent stake in Adani Total Gas. Besides, it owned 6.30 per cent stake in Ambuja Cements and 6.41 per cent stake in ACC.

According to recent data released this week, LIC, which manages equity assets worth Rs 11.16 lakh crore, raised its stakes in 50 listed companies, which includes firms like ITC Ltd, Adani Enterprises Ltd and Reliance Industries in the June quarter. 

On Thursday, the public sector insurance company reported a near 14-fold surge in first-quarter profit in Q1FY24, as it moved money to a shareholders' fund to shore up its bottomline.

The company posted a profit after tax of Rs 9,544 crore for the quarter ended June 30 as compared to Rs 683 crore a year ago.

On Thursday, shares of LIC closed at Rs 641.6 on BSE, 0.4 per cent lower than its previous close.

Also read: Rajeev Chandrasekhar attacks Rahul Gandhi over HAL, says company became 'Rs 1.35 lakh cr company under PM Modi'

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