LIC cuts stake to zero in 8 of 10 stocks with maximum fall in holdings in Q4

MUMBAI: Life Insurance Corp. of India (LIC) sold its entire stake in eight of top 10 stocks which saw highest decrease in the state insurer’s holdings in March quarter. The top institutional investor’s shareholding slumped to an all-time low of 3.66% of the market value of all publicly traded companies at the end of March, as per data compiled by Prime Database. A rally in equity markets prompted LIC to book profits as benchmark Nifty gained 5% during last three months of FY21.

LIC’s shareholding in these companies was at 3.7% at the end of December and 3.88% at the end of March last year. Its stake in these companies was at a record high of 5% in June 2012. LIC shareholding data includes companies where its stake is more than 1%.

Considering only free float (non-promoter holding), LIC ownership by value percentage went up marginally to 7.39% in the quarter ended March 2021 from 7.33% one quarter back. In terms of ownership by number of shares, LIC ownership went up marginally to 0.85% as on 31 March 2021, from 0.84% as on 31 December last year. This is calculated as average of LIC holding as a percentage of total share capital across all NSE listed companies.

Of the top 10 companies which saw the highest decrease in LIC’s holdings in percentage terms in March quarter, it reduced its stake to zero or nil in Central Bank of India (down 4.20%), Hindustan Motors (3.56%), Union Bank of India (3.22%), Jyoti Structures (1.94%), Morepan Laboratories (1.69%), RPSG Ventures (1.66%), Insecticides India (1.50%) and Dalmia Bharti Sugar (1.50%).

In value terms, companies which saw highest decrease in LIC’s holdings in March quarter were HDFC ( ₹2095.57 crore), Maruti Suzuki ( ₹1,181.27 crore), Union Bank of India ( ₹651.25 crore), Kotak Mahindra Bank ( ₹542.66 crore) and Asian Paints ( ₹463.08 crore). Companies that saw the highest increase in LIC’s holdings in percentage terms in the March quarter were Rail Vikas Nigam Ltd, New India Assurance, Bajaj Auto, Tata Communications, Jammu and Kashmir Bank, Adani Total Gas, Alembic Pharmaceuticals, PI Industries, Aurobindo Pharma and Biocon.

Data showed that equity holdings of all insurance companies declined to a five-year low of 4.8% as of 31 March. Aggregate domestic institutional investors’ (DIIs) holdings fell to a 10-quarter low of 13.03% in the March quarter from 14.42% in the year-ago period. DIIs, which include mutual funds, insurance companies, banks, financial institutions and pension funds, were net sellers of local shares worth ₹23,124 crore in the three months ended 31 March.

Source: Live Mint

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