LIC cuts stake in auto majors in Q2; turns bullish on GE Shipping, Dewan Housing

NEW DELHI: State-owned insurance giant Life Insurance Corporation of India (LIC) reduced stake in auto and auto ancillary majors such Tata Motors, Hero MotoCorp, Mahindra & Mahindra, Maruti Suzuki and Exide Industries during the quarter ended September 30, 2016.

The insurance major also offloaded some shares in Tata group companies such as Tata Motors, Tata Consultancy Services and Tata Steel during this period, according to a report by Kotak Institutional Equities.

LIC reduced its stake in Tata Motors to 5.2 per cent for the quarter under review from 7.1 per cent in the sequential quarter ended June 30, 2016. It also cut stake in Hero MotoCorp, Maruti Suzuki and Exide Industries to 5.5 per cent, 5.6 per cent and 4.7 per cent from 6.2 per cent, 6.9 per cent and 6 per cent, respectively, during this period.

The insurance giant showed interest in The Great Eastern Shipping and Dewan Housing Finance and acquired 1.3 per cent and 1.1 per cent stake in these companies, respectively. The insurance major also increased its holdings in FMCG major Colgate-Palmolive (from 4.7 per cent to 5.2 per cent), Tata Global Beverages (9.2 per cent to 9.8 per cent), National Aluminium (8 per cent to 10.6 cent) and Bata India (4.6 per cent to 5.9 per cent).

LIC also showed interest in IT bellwether Infosys and increased its holding to 6.5 per cent from 5.6 per cent in the previous quarter ended June 30, 2016.

According to Kotak Institutional Equities, there are 40 stocks that accounted for 83 per cent of LIC’s equity portfolio in India. The insurer has given highest weightage to HDFC Bank (6 per cent), followed by HDFC (5.1 per cent), Infosys (4.8 per cent), ITC (4.8 per cent) and Reliance Industries (4.2 per cent).