Top stocks in which LIC made a cool Rs 10,000 crore profit since April 1

India’s biggest institutional investors Life Insurance Corporation of India (LIC) made a quick buck in equities in the stocks rally from the March lows.

LIC Chairman MR Kumar says the PSU insurance behemoth made a profit of Rs 10,000 crore since April 1 on its equity portfolio. Domestic equity benchmark Sensex and Nifty have gained over 30 per cent during this period.

Data available with Ace Mutual Fund showed 96 per cent of LIC’s top stocks have delivered positive returns so far in FY21, with Alok Industries rallying the most at 729 per cent to Rs 32.50 as of August 21 from Rs 3.92 on March 31.

Among others, Ballarpur Industries, Jaiprakash Power Ventures, Reliance Communications, Digjam, GTI Infrastructure, CG Power, Rolta India, Reliance Power, Reliance Infrastructure and Dalmia Bharat have rallied 200-500 per cent. LIC kept its stake constant in these companies all through June quarter. There are chances that LIC might have booked some profit on these stocks during July and August. September quarter shareholding data will be out only in October.

The insurance major completely or partially sold its stake in at least 45 firms during June quarter. With a Rs 6 lakh crore equity portfolio, LIC held stakes in 329 companies as of June 30 against 360 firms at the end of March quarter. The total value of its equity portfolio stood at Rs 4.30 lakh crore as of March 31, which suggests huge cash deployment in equities at the market bottom.

LIC table

LIC table 2

“I cannot give the figures. Post the lockdowns for at least two months, we were only buying. We hardly offloaded anything and then subsequently we did some selling as well,” Chairman KR Kumar told ETNow on Monday.

It increased stakes in more than 50 companies during this period, including Suzlon Energy, TCS, Tata Power, Titan, Tata Steel, Reliance Industries, Punjab National Bank, ONGC and Maruti Suzuki. These shares advanced 10-60 per cent during April 1 and August 21.

Bajaj Auto, Bengal and Assam Company, Britannia Industries, Cadila Healthcare, Cipla and Garden Reach Shipbuilders were some of the stocks in which LIC reduced its holdings during June quarter.

Mid and smallcap firms including Icra, Kirloskar Engine Oil, Pidilite Industries and Seshasayee Paper & Boards were among other stock where the PSU insurer sold some shares and made up to 50 per cent profit over the past five months.

The life insurer held a 75.90 per cent market share in terms of number of policies and 68.74 per cent in terms of first-year premium as of FY20.