How Have LIC Shares Made a Strong Comeback?
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Synopsis
The resurgence of Life Insurance Corporation (LIC) shares has been remarkable, climbing over 34% from their 52-week low. This news highlights the factors behind the recovery, including market sentiment and brokerage optimism. As LIC continues to perform well, many are curious about the future trajectory of its stock.
Key Takeaways
- LIC shares rose by 34.41% from a 52-week low.
- The stock's market capitalisation surpassed Rs 6 lakh crore.
- Brokerages predict further growth for LIC shares.
- LIC achieved a Guinness World Record with policy sales.
- The company's brand value increased significantly.
Mumbai, July 3 (NationPress) The Life Insurance Corporation (LIC) has witnessed a remarkable recovery, with its shares surging approximately 34.41 percent from a 52-week low of Rs 715.30. This rise has been fueled by enhanced technical indicators, favorable market sentiment, and optimistic brokerage evaluations.
The public sector insurer’s stock had previously experienced a decline of nearly 40 percent between August 2024 and February 2025 due to ongoing selling pressure but has made a significant recovery since March.
Within a span of just four months, LIC has regained a substantial portion of its losses. The shares opened Thursday’s intra-day trading at a stable Rs 958 on the National Stock Exchange (NSE) and peaked at Rs 961.50.
Following this, the stock consolidated and was seen trading at Rs 949.10, reflecting a decrease of Rs 8.90 or 0.93 percent from the previous close around 1:20 PM.
The revival has also positively impacted the company’s market capitalization, which surpassed the Rs 6 lakh crore milestone in mid-June after a hiatus of seven months, adding Rs 2 lakh crore in value.
Brokerages maintain an optimistic outlook on the stock. ICICI Securities predicts that LIC shares could reach Rs 1,040, while Geojit Financial Services has set a target of Rs 1,088, both sustaining a “buy” recommendation.
The rally initiated in March received a significant boost in late May when the company announced impressive results for the March quarter (Q4), buoyed by exceptional policy sales.
LIC also made headlines by selling 588,107 policies in a single day on January 20, achieving a Guinness World Record, alongside showcasing robust financials and assets under management (AUM).
According to the 'Brand Finance India 100 report for 2025', the government-owned insurance giant ranks 4th among the 10 most valuable brands in India. The report indicated that LIC's brand value for 2025 stands at $13.6 billion, reflecting a 35.1 percent increase from its 2024 brand value of $10.07 billion.
Point of View
I observe that LIC's resurgence is a testament to market resilience and investor confidence. With strategic improvements and favorable conditions, the company has managed to regain lost ground. This serves as a reminder of the dynamic nature of the stock market and the importance of informed investing.
NationPress
03/07/2025
Frequently Asked Questions
What caused the rebound in LIC shares?
The rebound in LIC shares can be attributed to improved technical indicators, positive market sentiment, and optimistic ratings from brokerage firms.
What is the current market capitalisation of LIC?
The market capitalisation of LIC has surpassed the Rs 6 lakh crore mark, reflecting an increase of Rs 2 lakh crore in value.
What are the future predictions for LIC shares?
Brokerages like ICICI Securities and Geojit Financial Services are optimistic, projecting targets of Rs 1,040 and Rs 1,088, respectively.
How many policies did LIC sell on January 20?
LIC sold a record-breaking 588,107 policies in a single day on January 20, earning a Guinness World Record.
What is LIC's brand value for 2025?
According to the Brand Finance India 100 report, LIC's brand value for 2025 is estimated at $13.6 billion, marking a significant increase from the previous year.
