06 Jun , 2022 By : Kanchan Joshi
LIC share price: Extending the sell-off for the fifth straight session, shares of the Life Insurance Corporation (LIC) of India nosedived to its new low today in Monday's morning deals. LIC share price today opened at Rs800.25 apiece levels on NSE and went on to hit new low of Rs782.50 apiece levels in the opening bell with its market value dipping below Rs5 lakh crore to around Rs4.97 lakh crore.
LIC share price today is around 17 per cent lower from the upper price band of Rs949 per equity share of LIC IPO. Stock market experts believe that LIC shares may further go down as 30 days lock-in of the anchor investors will be ending in the midst of this month.
Asking positional investors to remain away from discounted shopping in LIC shares, Saurabh Jain, Vice President — Research at SMC Global Securities said, "LIC IPO had a weak listing as FIIs' participation in the stock was almost nil. Apart form this, there is an overhang of one month lock-in for anchor investors. Once anchor investors' one month lock-in ends, there can be more selling expected in LIC shares. So, my advice to positional investors in regard to LIC share is to avoid as its Q4 earnings are also not encouraging."
"LIC share price is looking on chart pattern and my advice to fresh investors is to avoid taking any position in LIC shares at current levels," said Sumeet Bagadia, Executive Director at Choice Broking.
On suggestion to long term investors who have LIC shares in their portfolio, Bagadia said, "LIC share price may go up to Rs750 levels and those who have long-term view can hold the scrip and keep on averaging on every 5-6 per cent dip. But, averaging should begin when it is around Rs750 levels."
Last week, brokerage and research firm Emkay said it has initiated coverage on LIC shares with a neutral view and has the stock's 12-month target price at Rs875, which is below its initial public offer (IPO) issue price.
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