Shares of LIC closed at their lowest level since listing, at Rs 536.95, on Tuesday. The stock shed 1.5% during the session, and touched its lowest level ever of Rs 535 in intra-day trade.
The stock had listed on May 17, 2022, and on the same day touched its lifetime high of Rs 920 on the same day before closing at Rs 875.45. The stock has shed close to 39% since listing.
“Buying interest has been low amid consolidation in the market. Further, strong institutional support has been lacking, with the continuous outflows by FIIs impacting performance,” said Kranthi Bathini, director (equity strategy) at WealthMills Securities.
Life insurance stocks have been underperforming, he said, given that FII interest in the BFSI sector is significant and any sell-off will affect their share prices. During the same period, ICICI Prudential has shed 15.7% and HDFC Life has slipped 11.74%, while SBI Life has edged up 2%.
Also read: Punjab’s realty developers hail Govt move to boost industrial and economic landscape
“The stock has drastically slipped from its peak zone and, after making a lower top formation near 625-levels, again eroded by breaking the crucial support zone of 565-levels, further weakening the trend. The stock has turned very bearish with next major support visible near 485-zone, with the RSI sliding further southward from the oversold zone indicating weak sentiment and bias. For the trend to improve, it has to cross the 575-580 zone decisively,” said Vaishali Parekh, vice-president (technical research), Prabhudas Lilladher.