http://www.thehindubusinessline.com/todays-paper/tp-markets/article976212.ece?ref=archive
http://www.mydigitalfc.com/news/lic-gets-buying-spree-048
LIC gets into buying spree
Aug 08 2011 , Mumbai
Tags: News
As global markets went into a tailspin, public sector behemoth Life Insurance Corporation of India (LIC) has turned an aggressive buyer in local stock markets. In the last two days, LIC has remained a net buyer and bought frontline stocks worth Rs 1,000 crore, with most investments going into blue chip stocks from FMCG, IT, metals and engineering sectors.
A senior LIC official told Financial Chronicle that the stocks are now available at 30-40 per cent discount. He said, LIC has in general refrained from buying banking shares.
On Monday, LIC remained a net buyer and bought stocks worth Rs 500 crore, said the official.
"We have been buying FMCG, IT, metals and engineering but have refrained from buying banking stocks. Only in some cases where the banking stocks are of lower valuations, we have bought a very few banking stocks," said the official.
In the last 15 days, LIC with a strong preference for large cap Nifty stocks has bought shares worth Rs 1,800-2,000 crore. "This is the net figure. The gross figure would be Rs 2,500 crore. Though on a normal day we buy and sell, we have remained net buyers in the past few days," said the official.
According to leading brokers, LIC may have bought shares of Hindustan Lever, ITC, Infosys, TCS, Hindalco, Tata Steel, JSW Steel, Voltas and Bhel.
The corporation has target of investing around Rs 38,000 crore in equities for 2011-12. "The investment target will depend on the inflow and could be around Rs 38,000 crore from Ulip and traditional policies," said the official.
According to BSE data, domestic institutional investors bought stocks worth Rs 1,320 cr. The Sensex, which stood at 18518.22 points on July 26 fell to 16,990.18 on August 8, a fall of 8.25 per cent. The S&P CNX Nifty lost 8.18 per cent since its July 26 close at 5,574.85. Nifty breached the critical level of 5,300 last week, has remained under firm grip of bears. On Monday, it remained under selling pressure and despite a bounce back attempt ended the day with a loss of 92 points at 5,118. All the sectoral indices gave a negative close.
A senior LIC official told Financial Chronicle that the stocks are now available at 30-40 per cent discount. He said, LIC has in general refrained from buying banking shares.
On Monday, LIC remained a net buyer and bought stocks worth Rs 500 crore, said the official.
"We have been buying FMCG, IT, metals and engineering but have refrained from buying banking stocks. Only in some cases where the banking stocks are of lower valuations, we have bought a very few banking stocks," said the official.
In the last 15 days, LIC with a strong preference for large cap Nifty stocks has bought shares worth Rs 1,800-2,000 crore. "This is the net figure. The gross figure would be Rs 2,500 crore. Though on a normal day we buy and sell, we have remained net buyers in the past few days," said the official.
According to leading brokers, LIC may have bought shares of Hindustan Lever, ITC, Infosys, TCS, Hindalco, Tata Steel, JSW Steel, Voltas and Bhel.
The corporation has target of investing around Rs 38,000 crore in equities for 2011-12. "The investment target will depend on the inflow and could be around Rs 38,000 crore from Ulip and traditional policies," said the official.
According to BSE data, domestic institutional investors bought stocks worth Rs 1,320 cr. The Sensex, which stood at 18518.22 points on July 26 fell to 16,990.18 on August 8, a fall of 8.25 per cent. The S&P CNX Nifty lost 8.18 per cent since its July 26 close at 5,574.85. Nifty breached the critical level of 5,300 last week, has remained under firm grip of bears. On Monday, it remained under selling pressure and despite a bounce back attempt ended the day with a loss of 92 points at 5,118. All the sectoral indices gave a negative close.
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