In this quarter LIC sells 5400 crore worth of shares, buys 2300 crores worth

The country's largest institutional investor Life Insurance Corporation of India (LIC) reduced its exposure in as many as 15 Sensex companies in July-September quarter, which is worth over $1 billion (a little over Rs. 5,400 crore)!

LIC trimmed its holding in HDFC, RIL, L&T, SBI, Tata Motors, Sun Pharma, Maruti Suzuki and Tata Power by about half a percentage point during the quarter, reported PTI. Sensex had rallied by about 9% or nearly 1,500 points during the quarter on the back of robust inflows from foreign investors.

The recent shareholding data disclosed by Sensex companies suggests that the state-run insurance giant’s holding fell the most in ICICI Bank, HDFC Bank, Mahindra & Mahindra and GAIL, which was about one percentage point each. It also reduced its holdings in companies like Cipla, where it fell by about two percentage points. 

It is estimated that LIC sold shares worth Rs 5,850 crore (over USD 1 billion) in these companies. However, LIC increased its holding in seven other Sensex companies, namely Wipro, Bharti Airtel, Hero MotoCorp, Infosys, TCS, Bajaj Auto and Hindalco Industries. An estimated Rs 2,300 crore was spent in these fresh purchases.

LIC’s exposure to four blue-chips remained unchanged. These companies include ITC, ONGC, BHEL and Hindalco. Moreover reportedly, LIC is not mentioned as a shareholder by two Sensex companies - Jindal Steel and Coal India. The country’s largest insurer was the major subscriber to shares sold by government in ONGC in March this year.