Saturday, February 9, 2013

LIC cuts stake in 27 Nifty firms; sells shares worth Rs 8,000 crore.



State-run insurance giant 
LIC has lowered its holdings in as many as 27 of the 50 blue-chip firms forming the market benchmark index Nifty, while selling shares worth an estimated Rs 8,000 crore.

Amid stepped-up share purchase by FIIs and an uptrend in the stock market, the 
Life Insurance Corporation of India (LIC) appears to have booked profits in many blue-chip stocks, shows an analysis of shareholding data of Nifty companies for the three-month period ended December 31, 2012.

LIC holds shares worth about Rs 2.33 lakh crore in all the Nifty companies put together, but it lowered its holding in a total of 27 Nifty companies during the quarter.

The cumulative value of LIC holding in these 27 companies fell by little over Rs 8,000 crore during the quarter, shows the analysis of changes in their shareholding patterns.

Individually, LIC is estimated to have sold shares worth Rs 500-1,000 crore in each of Mahindra & Mahindra,
HDFC BankBSE 1.24 %, ICICI Bank, Tata MotorsBSE -1.09 %, L&T, HDFC, WiproBSE 1.57 %, SBI, Maruti Suzuki, Dr Reddys and Bajaj Auto.

The insurance behemoth also trimmed holdings in 
Ambuja CementsBSE -5.10 %CiplaBSE -3.34 %, TCS, Lupin and Asian PaintsBSE -1.73 %. A marginal decline was also witnessed in its stakes in companies such as IDFCBSE -0.25 %Hindustan UnileverBSE -0.96 %GrasimBSE -1.37 %ACCBSE -3.04 %BPCLBSE -2.30 %Bank of BarodaBSE -0.61 %Punjab National BankBSE -1.63 %Sun PharmaBSE -0.63 % andTata PowerBSE 0.10 %.

On the other hand, LIC further ramped up its stake in a total of 14 Nifty constituents with purchase of shares worth an estimated Rs 4,000 crore.

The major companies where LIC has raised its stake include 
InfosysBSE -0.05 %RILBSE -0.79 % and Cairn IndiaBSE -1.61 %. Other such companies are ITC, Power Grid Corp, NTPCBSE -0.10 %, Siemens, Bharti AirtelBSE 0.42 % and Hero MotoCorpBSE -1.96 %.

The state-run insurer also marginally hiked its exposure in 
UltratechBSE -1.96 %Gail IndiaBSE 0.07 %,RanbaxyBSE -1.59 %Kotak Mahindra BankBSE -1.19 % and HCL TechnologiesBSE 0.31 %, while its shareholding remained almost unchanged in companies like ONGC, Tata SteelBSE -1.01 %BHELBSE 1.21 % and Reliance Infra.

Among the Nifty companies, LIC's holding in terms of value is estimated to be highest in 
ITCBSE -0.79 % (Rs 27,326 crore), followed by RIL (Rs 21,659 crore), ONGCBSE -2.02 % (Rs 17,764 crore), SBI (Rs 17,058 crore), L&T (Rs 16,800 crore), and ICICI BankBSE -1.31 % (Rs 10,006 crore).

Nifty is a well-diversified 50-stock index accounting for 22 sectors of the economy. The index represented about three- fourth of the free float market capitalisation of all the 
stocks listed on NSE as on December 31, 2012.

The insurance major appears to have mainly booked profits in select stocks from sectors like banks, pharma, auto, refineries and metal.

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