MUMBAI: Shares of public sector insurers like LIC, General Insurance Corporation (GIC Re) and New India Assurance saw double-digit gains on Friday, propelled by improved sentiment.
While shares of LIC were up because of growth prospects and new product launches, GIC Re received a boost following an upgrade to its ratings outlook from AM Best.
LIC witnessed a significant surge with its shares rising by 10% – marking its largest single-day gain in over eight months.Sources attribute this increase to news that the corporation plans to introduce a new product with assured benefits, potentially enhancing its market share.
LIC’s shares closed 9.7% higher at Rs 677, contributing nearly Rs 38,000 crore to its market capitalisation. Despite this positive development, LIC’s shares remain 21% below the issue price of Rs 949 when the corporation went public. Institutional investors had initially shunned the shares, leading to a substantial erosion of market value. The government had committed to not diluting shares for two years after the IPO.
While shares of LIC were up because of growth prospects and new product launches, GIC Re received a boost following an upgrade to its ratings outlook from AM Best.
LIC witnessed a significant surge with its shares rising by 10% – marking its largest single-day gain in over eight months.Sources attribute this increase to news that the corporation plans to introduce a new product with assured benefits, potentially enhancing its market share.
LIC’s shares closed 9.7% higher at Rs 677, contributing nearly Rs 38,000 crore to its market capitalisation. Despite this positive development, LIC’s shares remain 21% below the issue price of Rs 949 when the corporation went public. Institutional investors had initially shunned the shares, leading to a substantial erosion of market value. The government had committed to not diluting shares for two years after the IPO.
