LIC increased stake in these 25 firms in Q1FY24. Check out the names here

The country’s biggest institutional investor Life Insurance Corporation of India (LIC) upped its stake in at least 25 companies from across the sectors including chemicals, banks, metals and information technology, among others, during the June quarter, when the benchmark BSE Sensex advanced nearly 10 per cent. On the other hand, broader indices the BSE MidCap and BSE SmallCap gained 20 per cent and 21 per cent, respectively.

Data shows that LIC increased its holding in Tata Chemicals to 7.14 per cent in Q1FY24 from 4.13 per cent in the preceding quarter. Likewise, it held a 4.04 per cent stake in Indian Energy Exchange as of June 30, 2023, against 2.40 per cent on March 31, 2023.

In addition to this, LIC also significantly increased its stake in Gujarat Gas (to 3.22 per cent from 1.67 per cent), Atul Ltd (to 3.76 per cent from 2.32 per cent), Tech Mahindra (to 9.47 per cent from 8.07 per cent), Cipla (to 3.47 per cent from 2.15 per cent) and L&T Technology Services (to 5.70 per cent from 4.53 per cent).

Commenting on the information technology sector, Vinod TP, Research analyst Geojit Financial Services, said, “Indian IT companies are expected to rebound in the next couple of quarters with sustained margins and a growing order book size. The sector’s valuation has dropped significantly by over one-third, making it an attractive long-term investment option.”

LIC also had a 1.13 per cent and 1.09 per cent stake in SRF and DCB Bank, respectively, as of June 30. The insurance major was not among key shareholders in these two companies in the preceding quarter ended March 31.

While sharing its view on the chemicals sector, JM Financial in a report said, “World grain production for MY23/24 is likely to be close to a record high, and grain prices are still well above the 5-year average. Since the majority of the agrochemicals’ usage (above 40 per cent) is for grains, we don’t foresee an issue in demand for agrochemicals, specifically for the patented ones. A high crop price environment favours patented agrochemicals’ usage. This bodes well for PI, SRF, and Navin’s agrochemical businesses.”

In the IT space, LIC also bought an additional stake in Oracle Financial Services Software, Coforge and Mphasis. On the other hand, it further raised its stake in National Aluminium Company and Hindustan Zinc from the metal space.

Tata Power Company, Gail (India), IRCTC, Lupin, Marico, HPCL, UPL, Berger Paints, Deepak Nitrite, Bharat Dynamics, Bank of Maharashtra and Tata Consumer Products stood among other favourites in which LIC purchased additional shares.

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