LIC Shares Gain As Analysts Turn Positive On Financials After Exit Polls

Shares of Life Insurance Corporation of India gained nearly 5% on Monday as exit polls showed a third term for the Bharatiya Janata Party-led NDA government, leading several brokerages to turn positive on financial services stocks.

Motilal Oswal is 'overweight' on financials; IIFL Securities likes NBFCs; and HDFC Securities expects banking, financial services, and insurance (BFSI) to be the key beneficiaries.

On Saturday, PTI reported that ACESO, an insurance intermediary firm, launched an ALIP solution designed for LIC policyholders contemplating policy surrender or experiencing lapses.

In conversation with NDTV Profit last month, LIC Chairperson Siddhartha Mohanty said the insurer has booked significant profit from its equity investments as markets rallied to new highs.

LIC bought equity worth approximately Rs 1.3 lakh crore, which was flat year-on-year. The company's profit from equity investment amounted to approximately Rs 60,000 crore in the previous fiscal.

The company is also working internally on its health insurance segment foray before they get the composite licence for the same, Mohanty said.

Shares of the company rose as much as 4.67% to Rs 1,060 apiece, the highest level since May 28. It pared gains to trade 2.18% higher at Rs 1,034.75 apiece as of 11:29 a.m. This compares to a 2.90% advance in the NSE Nifty 50 Index.

The stock has risen 24.31% on a year-to-date basis and 63.65% in the last 12 months. The total traded volume so far in the day stood at 0.93 times its 30-day average. The relative strength index was at 59.27.

Out of 16 analysts tracking the company, 14 maintain a 'buy' rating, one recommends a 'hold,' and another suggests a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 3.1%.