LIC's PSU Stocks Holding Value Rises Nearly Rs 1 Lakh Crore Since Oct. 1
State Bank of India, IDBI Bank Ltd., and Oil and Natural Gas Corp. currently make for the largest holdings in value terms.
The value of Life Insurance Corp. of India's holding in PSU stocks grew by nearly Rs 1 lakh crore in the four months since Oct. 1, 2023.
This was because the underlying stocks rallied by over 50% during the same period as renewed capex cycle, rising domestic consumption, moderating inflation and stable interest rate regime amid expectation of policy continuity induced a broad-based rally in Indian stocks.
The country's largest insurer holds stake in 60 PSU companies, comprising total holding value of over Rs 3.3 lakh crore, as of Feb. 9.
State Bank of India, IDBI Bank Ltd., and Oil and Natural Gas Corp. currently make for the largest holdings in value terms, as of Feb. 9.
The life insurer has also picked up stake in two new public sector companies—SJVN Ltd. and Gujarat Fluorochemicals Ltd.—currently valued at Rs 800 crore and Rs 400 crore, respectively.
The Nifty PSE index, comprising 20 stocks, grew 53% as of Feb. 9 from Oct. 1, 2023—a nearly fourfold outperformance over the benchmark Nifty 50, which recorded a 10.6% gain over the same period.
