ITC falls as LIC may need to cut stake, drags Sensex

NEW DELHI: Shares of index heavy-weight ITC fell over 1 per cent in Tuesday's trade after reports that Life Insurance Corporation of India will have to prune its stake in the cigarette - maker and Larsen & Toubro to 15 per cent in two years.

Following the development, the stock lost 1.14 per cent to Rs 276.80 on BSE. It opened at Rs 281 and touched an intraday high and low of Rs 281.55 and Rs 276.05 respectively, in the first hour of trade.

As of June 30, 2017, LIC was holding 16.29 per cent stake in ITC, 18.91 per cent in Corporation Bank and 17.97 in Larsen & Toubro.

"Since LIC was buying out SUUTI's stake in these two scrips, the government would have got the money," said Irda member, life, Nilesh Sathe. "We have given two years' time to LIC to bring down its stake and hope they are able to do so.

The nation’s largest financial investor booked a whopping 72 per cent more profit at Rs 19,000 crore from its equity play in FY17.

The scrip touched its fresh 52-week high of Rs 353.20 on July 3, 2017 and its 52-week low of Rs 222.05 on December 26, 2016.