New Delhi. The decline in the shares of Life Insurance Corporation of India (LIC) has come to an end. Yesterday, June 14, Tuesday, the stock had made a new low, but closed almost 1 percent higher than Monday. Today, the stock gap-up opened on Wednesday and showed up to 5 percent increase in intraday. Meanwhile, the chairman of LIC has said that this stock is better for mid to long term and can give good profits. Which is good news for the stock buyers of LIC.
Since the opening of LIC’s shares, there is a continuous decline. The stock has registered a fall of more than 25 percent so far. This stock has made a low of Rs 663 on the National Stock Exchange (NSE). Yesterday on Tuesday, the stock broke the pattern of continuous decline for the last 10 days. Now investors are starting to feel that the stock may go up.
All anchor investors sold on Monday!
On Wednesday, LIC’s stock opened at Rs 681 and set a high of 709.70 in intraday. However, due to the volatility of the market, pressure was also seen on LIC and till the time of writing the news it was trading around Rs 692. On Monday it had dropped significantly. The reason for this is probably attributed to selling of shares by anchor investors, as the 30-day lock-in-period of anchor investors ended on Monday itself.
The government was also worried about the decline
DIPAM secretary Tuhin Kant Pandey said last week that the government was concerned about the fall in LIC’s share price. It will take time for people to understand the basics. LIC Management will look into all these aspects and enhance the value of the shareholders.
LIC chairman said investors should exercise restraint
LIC Chairman MR Kumar has said in an interview to Economic Times that people should not panic in view of the current situation. There are many other reasons for the decline in the market, such as war, global pressure in financial assets and tightness of monetary policy. As the market improves, LIC’s stock will also see improvement. Investors should exercise some restraint.
