New Delhi: The Life Insurance Corporation of India stock price hit 52-week high on BSE, NSE on Friday. At 11.50 am, share of the insurer was trading at Rs 794.30, higher by Rs 8.85 or 1.13 on BSE.
LIC on Thursday reclaimed market capitalization of Rs 5 lakh crore-mark after the shares of the company hit a 52-week high on the bourses. With Thursday’s jump in LIC shares, the second-largest PSU by market cap, surged another 19 per cent this week.
Analysts believe that the strong market capitalisation was witnessed on the back of LIC’s Jeevan Utsav plan which is an Individual, Savings, Whole Life Insurance plan with Guaranteed Additions throughout Premium Paying Term.
Meanwhile, some analysts have also attributed the increase in LIC’s M-cap to the rally in the value of Adani Group of companies where the insurer has a significant shareholding. The Adani group of companies have witnessed a significant rally in the last four months,
As on December 2022, LIC has the following stakes in seven Adani Group Companies –9.1% stake in Adani Ports & SEZ, 4.2% stake in Adani Enterprises, 6.3 percent stake in Ambuja Cements, 6.4 percent stake in ACC, 1.3 percent stake in Adani Green Energy, 6 percent stake in Adani Total Gas, 3.7 percent stake in Adani Energy Solutions.
Adani stocks have been under major pressure following the the US-based short seller Hindenburg Research report, that wiped out $100 billion from its total mcap. However, the clean chit by US agency, which said that accusations against billionaire Guatam Adani-led group by Hindenburg was irrelevant, led to sharp rally in Adani group stocks.