Value of LIC's equity holdings rises 40% in H1 FY21

The value of the nation's largest insurer LIC's equity holdings has crossed $77 billion (Rs 5.7 lakh crore) at the end of Q2FY2021. This September-quarter figure stands a little short of LIC's record holding of 84 billion in the March 2018 - Q4FY2018 quarter, rallying over 40 percent in the first half, says a report.

However, since the commencement of the second quarter, the market has rallied around 13 percent. This could have increased the value of LIC's portfolio considerably, if not in as many percentage points.

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Highlighting the chronological progress of LIC's holdings, Kotak Institutional Securities in a weekend note mentioned that in the March 2000 quarter, the value of LIC's holdings was at $4 billion. Back then, the BSE market capitalisation stood at only $102 billion and when it reached $1.14 trillion in March 2010, LIC's holdings fell in line and touched $59 billion as well.

LIC's holdings touched a record of $84 billion in March 2018, while market cap rose to $1.67 trillion. The latter peaked to $1.8 trillion in March 2019, while LIC owned $81 billion. Currently, the mcap stands at $1.77 trillion, of which LIC's ownership is at $77 billion, says the report.

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