There are signs of increasing interest rates worldwide. The interest rate in the US is going to increase next month. The US central bank has reported this about this. The interest rate is going to increase in the coming days in European countries including England. The question is whether the increase in interest rates worldwide will affect the stock portfolio of Life Insurance Corporation of India (LIC)? LIC’s stock portfolio is $ 128 billion.
The analysis of Bloomberg Intelligence suggests that LIC’s stock portfolio includes most large companies. These include companies from sector such as financial and energy. Therefore, the global rate highx is not expected to affect LIC’s stock portfolio.
LIC is the largest insurance company in India. It is going to introduce the IPO. This IPO is expected to arrive next month. LIC’s portfolio consists of veteran companies like Reliance Industries (RIL) and ITC. Reliance is the largest listed company in India. ITC business is very diversified.
According to Analysts Kumar Gautam and Nitin Chanduka, LIC’s portfolio in India’s total market capitalization accounts for around 3.6 per cent. Its portfolio consists of more than 370 companies. However, more investment is in shares of 35 companies. Large cap shares have more than 75 per cent stake in portfolio. Analysts have said that LIC’s portfolio is not as diversified due to high investment in 35 companies.
Analysts have said, “Duration of LIC’s equity portfolio appears low.” They estimate that the duration profiles of financial and energy companies are 12 and 16 years respectively, which is less. Both these sectors hold 23 per cent and 16 per cent in LIC’s portfolio.
LIC is the country’s largest insurance and life insurance company. It is the sixth largest life insurance company in the world. The company is going to raise Rs 60,000 to 90,000 crore from IPO. It has more than 29 crore policy holders, while there are more than 12 agents.
