Shares of insurance coverage sector big Life Insurance Corporation of India (LIC) continued their downward momentum and hit a contemporary all-time low on through the intraday commerce on Tuesday, hitting Rs 752.30 on the NSE and Rs 752.15 on the BSE through the late afternoon offers.
After slipping beneath the market capitalisation of Rs 5 lakh crore on Monday, the m-cap stood at Rs 4,76,904.83 crore at 3 pm Tuesday, in response to the BSE information.
Over 32.64 lakh shares of the insurance coverage big had been traded thus far on NSE whereas over 4.38 lakh shares exchanged fingers on the BSE, information from the respective exchanges confirmed.
Following its consecutive declines over the previous six classes, the scrip has now fallen over 20 per cent from its difficulty value.
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On May 17, LIC made its lacklustre debut on inventory exchanges, itemizing at over an 8 per cent low cost from its difficulty value of Rs 949 apiece after a profitable Rs 21,000 crore preliminary public providing (IPO) which obtained subscribed 2.95 occasions.
Speaking on the LIC inventory, Santosh Meena, head of analysis at Swastika Investmart famous, “The issue was priced at a price to the embedded value of 1.1x, which is a discount compared to its domestic as well as global peers. This valuation discounts concerns with the company like losing market share to private players, lower profitability & revenue growth compared to private players, lower VNB margins and short term persistency ratios. However, we believe India’s highly underserved life insurance market is still in its infancy and is well-positioned to capitalize on the enormous growth potential. LIC has a number of competitive advantages, including a strong brand value, a massive network of agents, and an enviable distribution network. So, investors with a long-term view can buy this stock at CMP and follow a buy on dip strategy.”