LIC Shares Hit Rock Bottom: At Rs 785: This Is LIC’s Lowest Share Price As Market Cap Falls Below Rs 5 Lakh Crore

Taking the total market capitalization below Rs 5 lakh crore, Life Insurance Corporation of India, LIC share prices hit a fresh all-time low of Rs 785 apiece on BSE on Monday. 

LIC Share Plunge

Basically, the life insurer’s share has lost 10.23 percent since listing on 17 May 2022. 

Not only that the stock has failed to even touch the IPO price of Rs 949. 

Considering today’s low, the stock price is down by 17.3 percent from the issue price. 

The  CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, Milan Vaishnav said, “LIC is purely under price discovery process. It would be best for investors to first wait for any basic confirmation of any bottom before taking any investment calls,”.

Why Would This Happen?

According to the analysts, the weaker global sentiment due to rising oil prices coupled with a rising interest rate scenario and muted Q4FY22 earnings expectations have led to selling pressure on majority of the stocks including LIC. 

The Co-founder & Trainer, Tips2Trades, Pavitraa Shetty said, “Technically, 765 looks a high possibility in the coming days. Till a closing above 824 is not achieved, trend could remain sideways to negative,”.

In another opinion, the VP & Head of Research, Share India Securities, Ravi Singh said, LIC may witness some more selling pressure and can touch the levels of 750 – 700 in coming trading sessions. 

Buy, Hold Or Sell?

Ravi Singh advised the investors to exit the stock at current levels adding that high risk appetite investors may hold their positions and wait for the trend reversal. 

He said, “Accumulation and buying may trigger at lower levels depending on the overall market sentiments,”.

In the same regards, the domestic brokerage firm Emkay Global Financial Services initiated coverage on LIC stock with a hold rating last week targeting price pegged at Rs 875 apiece. 

The firm said, “While we appreciate LIC’s market-leading position and comfortable valuations, we prefer private sector peers that have better growth, profitability and therefore higher RoEV prospects,”.

Notably the Macquarie analysts had initiated coverage of LIC stock with a ‘Neutral’ tag earlier. 

Interestingly, the international brokerage and research firm pinned a target price of Rs 1,000 per share on the stock despite the neutral tag.

It was 14% above the listing price of Rs 872 per share and even above the IPO price of Rs 949.