LIC readies to storm markets with Rs 1 lakh crore kitty

The Life Insurance Corporation of India (LIC), with over Rs 3,40,000 crore of assets, has budgeted a total investment plan of Rs 1,00,00 cro...

The Life Insurance Corporation of India (LIC), with over Rs 3,40,000 crore of assets, has budgeted a total investment plan of Rs 1,00,00 crore for 2004-05. The entire investible resources of the life insurance behemoth will be deployed in different segments like G-Sec, infrastructure, equity, corporate bonds and social security plans.

Confirming the plans, LIC managing director R.N. Bhardwaj said, ‘‘We have been able to generate Rs 1,00,000 crore of investible resources for the current fiscal.’’ ‘‘The majority of the investment will be made in G-Secs and fresh equity investment depends upon the opportunity in the market,’’ said Bhardwaj. LIC normally invests around 7-8 per cent of its investible resources in both the primary and secondary equity market. The total gross investment during 2003-04 was Rs 84,895 crore compared to Rs 59,908 crore in 2002-03.

The institution mobilises its annual investible resources primarily from three accounts — the new and renewal premia, income from various kinds investments and real estate.

Story continues below this ad

Bhardwaj explained that the equity market was attractive throughout the last year. From a low of 2904 in April 2003, the 30-share benchmark BSE touched a high of 6250 in January 2004. The market had rallied on the back of good corporate results and strong FII inflows. The rally was broad-based, and most of the sectors of the economy participated in the rally, and LIC had booked a profit of over Rs 3,500 cr from secondary market operations.

LIC’s total equity portfolio in terms of market value at the end of the last fiscal had also shot up from Rs 30,000 crore to over Rs 45,000 crore. The book value of LIC’s equity portfolio is pegged at over Rs 22,000 crore. However, the recent fall in the Sensex has pulled down the market value of LIC’s equity portfolio to below Rs 40,000 crore, he added.

Among dead in Vijay rally stampede, young mother, couple set to marry

Cities2 hr ago

A rally by actor-politician Vijay in Velusamypuram ended tragically with 40 deaths in a stampede. Non-political workers gathered to see the superstar, but exhaustion, heat, and poor planning caused chaos. People collapsed, ambulances couldn't reach, and police presence was inadequate. Vijay's team ignored instructions, and the narrow roads and insufficient crowd control added to the tragedy.

View all shorts

Live Blog

PHOTOS