State-run insurance giant Life Insurance Corporation of India (LIC) invested Rs 40,000 crore in equity markets in FY17. During the same fiscal, the insurer earned about Rs 19000 crore from share sales.
LIC is often considered a fall-back partner for the government when it comes to investing in companies. Moneycontrol picks benchmark index Nifty stocks to study LIC’s favourite scrips.
Interestingly, LIC holds 42 out of Nifty50 stocks in its portfolio as of March 31, 2017, according to Capitaline data.
In nine stocks, the insurance company has over 10 percent holding. In ITC, the insurer holds 16.26 percent stake, its maximum in its bouquet, followed by Larsen & Toubro, Tata Steel in which it has 15.7 percent and 12.57 percent, respectively.
In the year 2017 so far, among LIC’s favourite picks, 24 stocks have already outperformed Sensex returns which stand at 14 percent year-to-date.LIC’s total investment in equity was Rs 5,95,389 crore in FY16 and Rs 6,29,967 crore in FY15.