LIC to invest up to Rs 10k cr in equities

NEW DELHI: Undeterred by the bear phase in the market, India's largest insurer LIC said it would invest up to Rs 10,000 crore in the stock market this fiscal.

"We are likely to invest Rs 9,000-10,000 crore in equities in 2006-07," LIC executive director A K Dasgupta told the agency.

He said LIC mostly invested in blue-chip companies, which were supposed to be safe bets.

Asked whether the company was concerned with the recent volatility in the stock markets, he said: "We feel that there are strong fundamentals associated with the market and it will stabilise at good level in the coming times."

LIC, which puts up to 10 per cent of funds that it could invest in equities, was a net buyer during the market crash that started in May.

After launching a unit-linked scheme this month in accordance with the new guidelines, LIC plans to introduce two new products in the next two months.

"We are likely to launch a Unit-Linked Insurance Plan in August and a conventional product in September," LIC North Zone manager Ashok Shah said.

LIC's promotional campaign 'LIC Zindagi Express', an exhibition on rail, concluded on Monday in Delhi after traveling all over the country.

The voyage was kicked off from Delhi on April 26 as part of its Golden Jubilee Year celebration to create awareness about insurance.