LIC shares at new low as market capitalization dips below 5 lakh crore

LIC share price opened today at 800.25 per share on NSE and went on to hit a new low of 786.10 per share in the opening bell, with its market value falling below 5 lakh crore to around 4.97 lakh crore.

In Monday’s morning trading, shares of India’s Life Insurance Corporation fell to a new low. LIC share price opened today at 800.25 per share on NSE. And went on to hit a new low of 786.10 per share at the opening bell. With its market value falling below 5 lakh crore to around 4.97 lakh crore.

Today’s its share price is about 17% lower than the IPO’s upper price band of $949 per equity share. Stock market experts believe that LIC shares may fall further as the anchor investors’ 30-day lock-in period expires in the middle of this month.

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Saurabh Jain, Vice President — of Research at SMC Global Securities, advised positional investors to avoid discounted shopping in LIC shares “The LIC IPO had a poor listing because FII participation in the stock was almost non-existent. Aside from that, anchor investors have a one-month lock-in period. When anchor investors’ one-month lock-in period expires, more selling of LIC shares is possible. As a result, my advice to positional investors is to avoid LIC shares, as its Q4 earnings are also not encouraging.”

LIC Shares following a pattern

“The LIC share price is following a chart pattern, and my advice to new investors is to avoid taking any position in LIC shares at the current levels,” said Sumeet Bagadia, Executive Director at Choice Broking.

Bagadia made the following recommendation to long-term investors who own shares: “The LIC share price may rise to 750 levels, and those with a long-term view can hold the scrip and average on every 5-6 percent drop. However, averaging should begin around 750 levels.”

Emkay, a brokerage and research firm, announced last week. Moreover, that it has initiated coverage on the firm’s shares with a neutral view. And set a 12-month target price of $875, which is lower than the IPO issue price.