Life Insurance Corporation Shares Skyrocket 10% To Record Highest Single Day Gain Since Listing; Know Why

November 24 proved to be the best day for LIC shareholders as the share price of Life Insurance Corporation of India jumped almost 10% in the intraday trading. The stark rise of 10% in LIC shares was the best single-day gain in the stock's share price so far. At 3:19 pm IST, the share price of LIC was seen trading 9.87% higher at Rs 678.75 per share. In the last one year, the returns from the stock has gained 8.62%.

Today's rally in LIC share price can be attributed to the fact that Investors are optimistic about the company's plans to launch 3-4 new products in the upcoming months to boost growth in its new business premium (NBP).

On Thursday, the life insurer informed that the Corporation's shareholding in "Engineers India Ltd." has decreased from 2,89,70,343 to 1,75,46,621 Equity Shares, decreasing its shareholding from 5.155% to 3.122% of the paid-up capital of the said Company.

Engineers India Ltd (Ell) is a leading global engineering consultancy and EPC company owned by the Govt. Of India operating under the control of the Ministry of Petroleum and Natural Gas (MoPNG).

Recently, in an interview with news agency PTI, LIC Chairman Siddhartha Mohanty said that the state-run insurer was estimating a double-digit growth in the current financial year over the last year. According to him, the insurance giant intends to achieve this goal by launching some new attractive products.

LIC is reportedly going to launch one product with having loan facility and premature withdrawal features in the first week of December.

Since its listing in May last year, the share price of LIC has experienced a downhill and declined as much as Rs 530.05 on March 23, 2023. Though the stock has recovered slightly, it is still 44% lower compared to its issue price of Rs 949.

For the quarter ending September 30, 2023, LIC reported a 50% decline in net profit to Rs 7,925 crore.

With its share price at Rs 677 a piece, LIC commands a market capitalization of Rs 4,28,202.34 crore.

The Indian equity market closed lower today. At market close, the Sensex fell 0.12% at 65,970.04, and the Nifty was down 0.06% at 19,790.55 points.