Public sector insurance major Life Insurance Corporation of India (LIC) will be investing Rs 4,000 crore in the stock markets this year.
The amount will be injected into the markets over the current year, while half of the amount would be invested in February and March.
LIC expects to generate around Rs 60,000 crore of investible surplus this year, seven per cent of which will find its way into the equity markets, said top LIC sources. The life insurance major has drawn up plans to step into the stock markets in a big way and would be investing a few hundred crores every month.
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The company is required to mark-to-market its equity portfolio only at the end of the financial year and has the ability to hold on even as valuations go down and sell when it wants to book profits.
LIC officials said that it has also been selling in the market to book gains as and when the bourses take a bull run. The falling interest rates has prompted LIC to aggressively trade in stocks and book profits.