The largest insurer, LIC, witnessed heavy selling in Tuesday’s trading session before closing near the day’s low. The performance comes after LIC’s financial results for the period March 31, 2022. Notably, LIC’s stock also tracked the bearish tone of the markets and the collapse of some key peers. LIC’s market cap is close 17,000 crore in just one day. Life insurance stocks were under pressure with LIC being the worst hit and SBI Life Insurance outperforming.
on Tuesday, LIC shares closed below 811.50 25.55 or 3.05% on BSE. Shares were near day’s low 810 per. Shares too were a few bucks away from their 52-week low 801.55 each on the exchange.
LIC’s market cap remained at closing price 5,13,273.56 crores. it is less than 16,160.37 crores as compared to market cap of 5,29,433.93 crores of the previous day.
LIC currently holds the 5th position in the list of most valuable companies in terms of market capitalization on BSE. It follows major stocks like HUL, Infosys, HDFC Bank, TCS and Reliance Industries.
For the year ended March 31, 2022, LIC registers a growth of 6.1% in Net Premium Income 4,27,419 crore as compared to 4,02,844 crore in the last financial year. LIC’s net profit for the whole year was An increase of 39.39% as against 4,043.12 crore 2,900.57 crore in FY21.
Further, the yield on investment on policyholders’ funds excluding unrealized gains stood at 8.55% in FY2012 as compared to 8.69% in FY2011. Net NPAs in policyholders’ funds declined to 0.04% for the year ended March 31, 2022, as against 0.05% in the previous fiscal. Also, the solvency ratio for the year ended March 31, 2022 was 1.85 as against 1.76 for the period ended March 31, 2021.
LIC board on Monday also recommended dividend of 1.50 per share translates into dividend payout 948.75 crore which is about 23.46% of the total PAT.
LIC has largely faced bearish sentiments since the time of listing on May 17.
in the upper price band of the IPO 949 each, the market cap of LIC remained 6,00,242 crores.
LIC’s market cap has almost fallen relative to the issue price 87,000 crore on BSE.
LIC peers HDFC Life and ICICI Prudential also faced selling pressure on Tuesday. Whereas SBI Life Insurance outperformed them.
HDFC Life Base 598 each on the BSE, down 1.62%. Its market cap declined 2,081.38 crore in a single day 1,26,361.80 crore as compared to the previous day 1,28,443.18 crores.
ICICI Prudential fell 2.02%. closed on 519.60 each. Its market cap fell from 1,537.95 crore 74,683.83 crore today as compared to the previous day 76,221.78 crores.
Closed on SBI Life on BSE 1173.85 each, an increase of 2.2%. its market cap was 1,17,436.35 crore – more than 2,526.11 crore as compared to the previous day’s market cap 1,14,910.24 crores.
Though LIC has today suffered huge losses as compared to its peers, yet the state-owned insurance company is the largest compared to them in terms of market cap and business module.
The Sensex closed 359.33 points or 0.64% lower at 55,566.41. The Nifty 50 closed at 16,584.55, down 76.85 points or 0.46%.
On today’s market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, “Domestic market failed to hold on to recovery mode as it awaits release of Q4 GDP data. GDP registers a slow growth rate of 4.0 Expected to do- 4.2% as consumer spending and investment were hit by rising inflation. The rise in oil prices due to the EU’s embargo on Russian oil imports will act as a headwind in controlling global inflation. Policy changes by banks will be a major factor and will be monitored in the coming days.”