LIC investors lose more despite markets making big gains: Why is stock falling and what to do now?
LIC share price today dropped 1.85% to Rs 825.30.
- Sensex gained 2.91% or 1,534.16 points today.
- Nifty moved up by 2.89%.
- LIC share hit a new low of Rs 825 on May 20.
New Delhi: LIC share price today (May 20) closed at Rs 825.30, down 1.85% from yesterday’s closing price. In contrast, Sensex gained 2.91% or 1,534.16 points while Nifty moved up by 2.89%. Moreover, most large cap stocks made impressive gains today, while LIC remained among the few laggards. Investors of the Life Insurance Corporation (LIC) of India’s initial public offer (IPO), who bought the shares at Rs 949 apiece, must now be looking at a 13.03% loss accumulated in the last four days.
LIC share hit a new low of Rs 825 on May 20. So far, the investors of the company have lost more than Rs 70,000 crore. Many investors must now be worried about what they should do next. Should they hold in hope of share closing the losses or sell right now to make sure that they don’t lose any more money?
Also, many, who were waiting to buy LIC shares, must be seeing the drop in LIC share price as a wonderful opportunity to invest right now. However, the doubts of a further drop in share price must be holding them back.
LIC Shares: Buy, Sell or Hold?
LIC share prices could increase in the coming days, at least according to several brokerage firms and research analysts. Global financial services group Macquarie has set a neutral rating on the share. The company has put a target price of Rs 1,000 on the share. Also, Zee Business Senior Research Analyst Varun Dubey’s pointed out that LIC stock has become the world’s cheapest insurance stock on the back of attractive valuations. Also Read: 7th Pay Commission: 18-months DA arrears issue likely to be taken up in next cabinet meet, Rs 2 lakh to be given at one go?
Aamar Deo Singh, Head Advisory, Angel One, said to FinancialExpress.com, that global inflationary concerns coupled with investor sentiments jittery on world economic growth, also appear to have had a negative impact on LIC in the short-term. Also Read: Zilingo sacks Indian origin CEO Ankiti Bose for financial irregularities
Disclaimer: The above-mentioned recommendations are of the respective brokerage firms and research analysts. Investors should consult their financial investing before investing in stocks.