Life Insurance Corporation increased its stake in all the three listed automobile companies, Maruti Suzuki, Tata Motors and Mahindra & Mahindra. The country’s largest institutional investor also raised its stake in Hero MotoCorp.
The government-owned insurance firm has booked profit in Ashok Leyland and marginally brought down shareholding in TVS Motor and Bajaj Auto in the year ended March 31, 2016.
Interestingly, stock prices of all these companies, barring Tata Motors, have seen an appreciation in the year ended March 31. Significant appreciation has happened in Ashok Leyland (47.6 per cent), TVS Motor (22.33 per cent) and Bajaj Auto (19.26 per cent).
The rest have seen single-digit gains. LIC’s decision to reduce stake in Ashok Leyland and TVS Motor is in line with the sharp run seen in both these stocks. “LIC has booked profits after the run-up in these stocks,” said S P Tulsian, an investment advisor.
