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Quant Mutual Fund has added LIC shares in its stock portfolio in December 2022. As per the shareholding of Quant Mutual Fund as on 31st December 2022, the asset management company (AMC) has added 18 new shares in its stock portfolio last month and LIC shares are one of them. The AMC bought 49,48,500 LIC shares, which is 0.08 per cent of total paid up capital of the insurance behemoth.

According to stock market experts, market is expecting rise in financials of LIC as it has strong investment in PSU companies and state-owned companies have performed well in recent few quarters. So, the market is expecting rise in revenue from its asset investments in PSU companies. Apart from this, stock is on cusp of giving V-shaped breakout on chart pattern at 740 apiece levels. They expected sharp upside move in LIC stocks once it gives this breakout on closing basis.

On why mutual fund is bullish on LIC shares, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "LIC has good exposure in state-owned companies and such companies have performed well in recent quarters. So, Dalal Street is expecting rise in revenue in its asset revenue from state-owned PSU companies. However, from an AMC perspective, the investment volume is very low and hence one should remain vigilant while making any investment decision as asset revenue is not a part of its business model."

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Speaking on LIC shares, Anuj Gupta, Vice President — Research at IIFL Securities said, "LIC share price chart pattern suggests that the insurance stock is in base building mode and it is in the range of 680 to 740 per share zone. Once the stock gives breakout above 740 levels on closing basis, the stock may go up to 900 to 950 apiece levels in short term. So, those, who have LIC shares in stock portfolio should hold the stock with stop loss at 680 while fresh investors should wait for the stock to give this V-shaped breakout at 740 levels on closing basis."

Shares of Life Insurance Corporation (LIC) of India have remained under sell off heat since it listed on BSE and NSE in May 2022. The insurance behemoth offered its shares at 902 to 949 apiece while launching the public issue. However, LIC shares made a discounted debut on Dalal Street and went on to hit life-time low of 588 levels on NSE.

Disclaimer: 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.

ABOUT THE AUTHOR

Asit Manohar

Chief Content Producer at Live Mint Digital Team
Catch all the Mutual Fund news and updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
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