LIC portfolio: Tata Motors, RIL, ICICI Bank among 84 stocks India bull dumped in Q2
stocks and raised bets on IT stocks in the September quarter.
An analysis of shareholding patterns of BSE-listed companies shows that LIC dumped at least 84 stocks like Tata Motors, Reliance Industries (RIL), Dr. Reddy's Laboratories, TVS Motor, Dixon, ONGC, Reliance Power and Tata Elxsi.
Of particular interest was LIC's strategy in dealing with banks and IT stocks.
In case of Canara Bank, India's largest domestic institutional investor was seen reducing stake by 122 basis points to 7.34%, IndusInd 59 bps to 2.42%, Karnataka Bank 49 bps to 4.17%, ICICI Bank 28 bps to 7.34%.
However, the holding went up in HDFC Bank, SBI and Axis Bank. Other bank stocks in LIC portfolio include Bandhan Bank, Bank of India, Bank of Maharashtra, Central Bank of India, City Union Bank, IDBI Bank, Indian Overseas Bank, Kotak Mahindra Bank, PNB, Jammu and Kashmir Bank, South Indian Bank, UCO Bank and YES Bank.
The India bull was also seen raising stake in IT companies like Infosys, TCS, Tech Mahindra, Wipro, LTIMindtree and HCL Tech.
Among other stocks, LIC fund managers were seen making bullish calls on Tata Chemicals, Deepak Nitrite, SBI Cards, SAIL, Berger Paints, Pidilite Industries, IRCTC and L&T.
What should investors do?
Given the robust domestic macro situation, robust inflows from domestic investors and broadly in-line Q2 earnings season, analysts see bond yields and the impact of the Israel war as the only major concern that can derail the bull run that has seen minor hiccups in October.
With the strong catch-up by midcaps and smallcaps in the last couple of months, flows may now likely shift to largecaps with a higher margin of safety due to time as well as price correction.
«The current setup is a ‘Buy on Dips’ market.
