The country's largest insurer LIC has purchased shares worth over $2 billion (about Rs 11,000 crore) in Indian companies - mostly in sectors like utilities, energy and software - during the April-June period, according to a report by BofA-Merrill Lynch.
At the same time, Life Insurance Company (LIC), also among the biggest investors in the stock market, sold shares in media/hotels and consumer good firms worth $115 million (about Rs 638 crore).
It purchased shares of state-run NTPC; software firms - Infosys and Tata Consultancy services; energy giants - Reliance Industries and Cairn India. LIC offloaded shares of auto maker Tata Motors and private sector lender HDFC Bank.
As per BofA-Merrill Lynch Global Research report, LIC's major investment during the quarter included NTPC ($531 million), Infosys ($356 million), RIL ($269 million), Cairn India ($221 million) and Bajaj Auto ($199 million).
On the other hand, LIC lowered its exposure to companies like Tata Motors (selling of shares with an estimated $58 million), Syndicate Bank ($49 million), Hindustan Unilever ($45 million), Allahabad Bank ($32 million) and HDFC Bank ($23 million).
The report indicates that overall LIC has emerged as net buyer during the April-June quarter and most of the investment was in private sector firms.
In terms of sectors, LIC investments in the utilities portfolio stood at $523 million, followed by software $490 million, energy ($487 million), auto ($241 million), industrial ($102 million), telecom ($77 million), pharma ($46 million), financials ($45 million), metals and mining ($15 million).
In contrast, the insurance giant offloaded shares valued at $93 million in the consumer goods firm, $13 million in media/hotel category and $9 million in cement sector.
Financial sector accounted for 25% of LIC's total equity portfolio in the country followed by energy 15%, consumer goods 12% and industrial space 10%.