Indian stock market: Why LIC share price is skyrocketing for last four months?
Indian stock market: Shares of Life Insurance Corporation (LIC) of India have been on an uptrend in the last four months. In this period, the LIC share price has risen from around ₹600 to ₹1,066 apiece level, registering around 75 percent rally in this time.
According to stock market experts, strong Q3FY24 results, dominant market position, and rotation in the PSU basket towards shares that didn't participate much in the PSU stocks rally. They said that LIC share price was trading at a discount while the industry PE was at the multiple of 2.
Also Read: Gold price jumps on softening US dollar, Middle East crisis On reasons that fueled LIC share price, Omkar Kamtekar, Research Analyst at Bonanza Portfolio said, "Life Insurance Corporation of India (LICI) announced its results on 08th February to which the markets gave a rousing reaction as the stock jumped nearly 6% in early trade. The results were a prelude to the new strategy devised by the management to improve the VNB margin by improving the product mix to increase the contribution of revenue from non-par products." Also Read: US Markets Wrap: S&P 500 Hits 5,100 Milestone to Extend Winning Run "In 9MFY24 the total APE de-grew by 4.7% to ₹35,790 crore as the Individual Par business was down by 4.7% to Rs.
20,203 crore. However, what enthused the street was the 49.1% jump in the Individual Non-par business, driven by a 412% rise in the Individual saving business.
Consequently, the share of the non-par business has come up to 14% in 9MFY24 from 9.5% in 9MFY23," Kamtekar said. Listing out the reasons that have pushed LIC share price in recent sessions, Shreyansh V Shah, Research Analyst at StoxBox said, "There are a few reasons behind it including its performance in Q3FY24
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