You can not overlook the activities of LIC of India in share market. No doubt, there are people who raise finger at the actual financial structure of the corporation as it is accepted among the experts that no one really knows the actual size of LIC of India. Well this is a general corridor talk which do not carry much weight.
The important issue is the recent structuring of LIC in its portfolio which had been studied by another private bank researcher and report in Economic Times HERE.
It is my observation over a period of time, then when market falls, the FIIs sell and move out. It is the DIIs which then come in and buy and keep the market floating at a particular rate. When Fiis offload, then it is only Diis who have that kind of money to make the purchases. Otherwise, the market would bust. When the fiis reenter, it is diis which sells and fiis buy and then the market runs. This is how the merchants in share market had been working as per my observation.
However, this report attracted my attention because, it is showing some different pattern in case of LIC. It is buying public sector banks and selling such shares which if accumulated by an individual over a period of time, that they can easily take care of his old age.
Just read the list of shares which it has sold. One does not need a certification from an expert to pick them in ones portfolio.
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