LIC stares at falling value after gorging on public sector stock

Despite the fact that the Sensex has rallied to levels of 19,300 points, Life Insurance Corporation (LIC) is out of the money in several of its stakes in public sector companies and banks. The latest example of this is the state-owned insurer’s purchase of shares of Hindustan Copper at R156.56 apiece on November 23. LIC is believed to have picked up a large chunk of the R808-crore issue at the auction, but five sessions later, on Monday, the Hindustan Copper stock closed at R152.60. During this period, the Sensex rallied nearly 800 points or 4.3%.

Read Full Story>>