LIC pumps Rs 1,800 crore in stocks

Life Insurance Corporation (LIC) of India has pumped in Rs 1,800 crore in the stock market during the four months of this fiscal, and is looking to invest more with stock valuations turning attractive in the falling market.

LIC with its large portfolio has the ability to hold on to investments in volatile markets and in fact the drop in values of some scrips provides buying opportunity, LIC managing director A. Ramamurthy told reporters. Asked about LIC’s subdued presence in the money market, Ramamurthy, said ‘returns are falling and we should get minimum yield for our investments’. ‘‘The market trends are not clear as to where the interest rates are headed at the moment.’’ However, that would not impact LIC’s investment plans as infrastructure segment like highways need substantial funds, he added.On the LIC’s plan to set up a merchant banking outfit in collaboration with Corporation Bank, he said ‘‘we are going slow on the proposal as there are no issues (IPOs and other offerings).’’