Home/ Markets / Stock Markets/  As LIC shares hover around record low, key stock levels to watch

Shares of Life Insurance Corporation of India (LIC) have remained under pressure, hovering around record low levels of 566 apiece on the BSE on concerns over exposure to Adani Group - which has remained under pressure since January 24 report of US short seller Hindenburg accused it of manipulating stock prices and other corporate governance lapses.

Led by the heavy sell-off in Adani Group stocks, state-run insurance giant LIC's investments made in the group companies have turned negative, as per data analysed from stake held by the insurance firm as per the December shareholding pattern available on the exchanges.

After the release of the Hindenburg report, LIC on January 30 had stated it has 35,917 crore under equity and debt at the end of December in Adani Group stocks. It said the total purchase value of equity under all Adani group companies is 30,127 crore.

“LIC stock is in bearish structure after breaking the major support of 600 levels. The momentum indicators like RSI (Relative Strength Index), MACD and MAs are in negative zone and suggesting further weakness in the counter. The stock may touch the levels of 550 in coming trading sessions," said Ravi Singh, Vice President and Head of Research, Share India.

its consolidated net profit rose sharply to 8,334 crore in the third quarter as compared to 235 crore in the same period last fiscal. LIC's net premium income improved to 1.11 lakh crore in the reporting quarter, up 14.5% from 97,620 crore in the year-ago period. The net income from investments jumped 11% YoY to 84,889 crore from 76,574 crore in the year-ago period.

“LICI has all the levers in place to maintain its industry-leading position and ramp up growth in the highly profitable product segments. However, changing gears for such a vast organization requires a superior and a well-thought out execution plan. We expect LICI to deliver a 15% CAGR in APE over FY23-25, thus enabling 21% VNB CAGR. However, we expect operating RoEV to remain modest at 10.4%, given its lower margin profile than private peers," Motilal Oswal had said in a Feb 10 report post LIC's Q3 results.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 28 Feb 2023, 10:37 AM IST
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