LIC shares surge 9% post PM Modi's endorsement; overtakes ICICI Bank to rank 4th in market size
Despite previous comparisons to a slow-moving elephant by investors, LIC's remarkable achievement came to fruition during the late morning session when its market value peaked at an impressive Rs 7.24 lakh crore.
FollowFollowing Prime Minister Narendra Modi's resounding endorsement of the Life Insurance Corporation of India (LIC) during his address in the Rajya Sabha, the state-owned insurer's stock witnessed a remarkable surge, climbing by 9.5% to a historic high of Rs 1,144 on the Bombay Stock Exchange (BSE). This surge propelled LIC's market capitalization beyond the Rs 7 lakh crore threshold for the first time, solidifying its position as India's fourth-largest stock, overtaking stalwarts like ICICI Bank and Infosys.
Despite previous comparisons to a slow-moving elephant by investors, LIC's remarkable achievement came to fruition during the late morning session when its market value peaked at an impressive Rs 7.24 lakh crore.
In a significant turn of events, LIC's market cap surpassed that of ICICI Bank, further underlining the growing strength of the state-owned insurer. The market capitalization of ICICI Bank currently stands at Rs 6.95 lakh crore, indicating the shifting dynamics within India's financial landscape.
The bullish trend continued as LIC's shares soared to a new record high of Rs 1,145, marking a significant milestone for the insurance behemoth. Notably, the stock's performance has been exceptional, with a 52-week low of Rs 530.05, highlighting its substantial growth trajectory.
Analyzing the recent performance of LIC shares, the data reveals an impressive upward trajectory. Over the past five days, LIC shares have surged by 17.72%, representing a substantial increase of Rs 167.35. Moreover, the stock has witnessed a remarkable 33.58% surge in the past month alone. Looking at the six-month chart, LIC's stock has soared by an impressive 72.68%, translating to a substantial increase of Rs 468.05 during this period.
Prime Minister Narendra Modi's endorsement of LIC's success reflects a broader trend of growing confidence in government-owned companies and PSU shares. PM Modi's statement in Parliament emphasized the noteworthy achievements of LIC and underscored the government's commitment to fostering growth and stability in the Indian economy. He highlighted the expansion of government companies from 234 in 2014 to 254 at present, showcasing the resilience and dynamism of India's public sector enterprises.
The surge in investor confidence in PSU companies reflects a broader trend of burgeoning trust in India's economic prospects. LIC's listing in May 2022 marked a significant milestone, and its subsequent performance in the stock market has been nothing short of remarkable. As LIC continues to scale new heights, it exemplifies the strength and resilience of India's public sector enterprises, reaffirming their pivotal role in driving economic growth and prosperity.
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