The price of LIC shares increased today and by midday on Thursday, it had reached a fresh 52-week high of ₹791.90 per share. The LIC share price is still a long way from its ₹949 issue price, though.
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Life Insurance Corporation’s (LIC) share price has been rising since it hit a lifetime low of ₹530.05 on the NSE on March 31, 2023. When LIC shares reached a low point at the close of FY23, Dalal Street bulls showed a great deal of interest in purchasing them. LIC stock appears to still have some traction, nevertheless.
Stock market experts claim that the price of LIC shares broke out at ₹698 per share and has since experienced a strong upward trend after holding over ₹700. They stated that because insurance companies record higher quarterly earnings in the second half of the financial year, the market is anticipating better Q3 and Q4 numbers from the insurance behemoth.
Market analysts continued by saying that LIC shares are projected to rise strongly and reach levels of ₹840 per share shortly, while in the long term, they are anticipated to reach levels of ₹940 to ₹950 per share, which is the price at which the maximum price range of the LIC IPO was defined (₹949).
LIC IPO Details
In May 2022, Life Insurance Corporation of India made its initial public offering (IPO), with equity shares priced between ₹902 and ₹949. The public offering was priced at a discount, with each equity share trading for ₹867 on the BSE and ₹872 on the NSE. The suffering of the allottees did not, however, end here as the price of LIC’s shares continued to plummet, reaching a record low of ₹530.05 per share by the end of March 2023.
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Insurance Business Is There To Back LIC
According to Saurabh Jain, Vice President of Research at SMC Global Securities, “LIC of India is the biggest insurer in India, and there is no doubt about the strength of LIC as a company.” This explains why the share price of LIC is on the rise.
In general, the third and fourth quarters of a fiscal year see higher business volume for insurance companies as individuals purchase additional policies to reduce their income tax liability. Thus, the market anticipates that LIC will release stronger results in the second half of the current fiscal year. LIC shares are currently the subject of heavy making wagers by investors due to their discounted price.”
In addition, LIC maintains a sizable equity portfolio. The market is anticipating some return on its investment in the current quarter, given that the stock market has been reaching record highs for the past five days, according to Jain.
Targets For LIC Shares Price
Anticipating additional growth in LIC shares, Senior Manager of Technical Research at Anand Rathi, Ganesh Dongre stated: “LIC shares have been in an uptrend since breaking out at ₹698 apiece levels. If the stock closes above ₹750 and reopens above ₹750 tomorrow, the current rise may continue. In that scenario, it is anticipated that the price of LIC shares will briefly reach ₹805 and ₹840.”
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“On breaching ₹840 per share levels, we may expect the LIC share price to touch ₹940 to ₹950 levels in next two to three months,” the analyst said.
“Those who have LIC shares in their stock portfolio, they are advised to maintain stop loss at ₹725 whereas fresh entry is allowed only when the stock opens above ₹750 on tomorrow,” Anand Rathi’s Ganesh Dongres suggested to both new and existing purchasers. For the aforementioned aims, one can purchase LIC shares if it opens above the ₹750 levels while keeping their stop loss at ₹725 per share.”
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