LIC (Life Insurance Corporation of India) share price hit a fresh all-time low of Rs 785 apiece on BSE on Monday, taking the total market capitalisation below Rs 5 lakh crore. The LIC stock price has lost 10.23 per cent since listing on 17 May 2022. So far, the stock has failed to even touch the IPO price of Rs 949. With today’s low, the stock price has plunged 17.3 per cent from the issue price. “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,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com.
Analysts also said that 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. “Technically, 765 looks a high possibility in the coming days. Till a closing above 824 is not achieved, trend could remain sideways to negative,” Pavitraa Shetty, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com.
LIC may witness some more selling pressure and can touch the levels of 750 – 700 in coming trading sessions, Ravi Singh, VP & Head of Research, Share India Securities, told FinancialExpress.com. He advised investors to exit the stock at current levels, and said that high risk appetite investors may hold their positions and wait for the trend reversal. “Accumulation and buying may trigger at lower levels depending on the overall market sentiments,” he added.
Last week, domestic brokerage firm Emkay Global Financial Services initiated coverage on LIC stock with a hold rating, and target price pegged at Rs 875 apiece. “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,” it said.
Earlier, Macquarie analysts had initiated coverage of LIC stock with a ‘Neutral’ tag. However, despite the neutral tag, the international brokerage and research firm pinned a target price of Rs 1,000 per share on the stock, which is 14% above the listing price of Rs 872 per share and even above the IPO price of Rs 949.