Life Insurance Corporation of India, the country’s largest domestic equity investor, has said that it has decided to bring down its aggressive investment in equities. LIC had invested in Indian stocks worth Rs.39,224 crore between April and September this year, more than twice that in the past year. The insurer made about Rs. 12,374 crore on sales of equities during this period.
VK Sharma, Chairman, LIC of India, was quoted as saying: “We are contrarian (when it comes to investment). Market (equity) is at peak. We will be selling whenever we have an opportunity…We will keep on doing routine sale and purchase, but we will not be aggressive in buying equities.”
LIC will keep booking profits on its Rs.5.71 lakh crore equity holdings, Sharma added.
Compared to a decade ago when LIC dwarfed every other domestic institution, today the Indian market is mature with counter-balances to LIC in the form of mutual funds, EPFO, NPS and insurance companies. Domestic MFs manage over Rs.7 lakh crore of equity money. FIIs, which had been in sell mode in the recent past, can also turn buyers as they take a relative call across markets for the new year.
