Market data shows LIC ownership went up in at least 40 stocks and trimmed holdings in 75 other counters. LIC’s stake rose 409 bps in fertiliser-maker Kothari Industrial Corporation, 301 bps in Tata Chemicals, 240 bps in SAIL, 173 bps in Bata India and 164 bps in IEX.
Other top picks included Tech Mahindra, L&T Technology Services, Bank Of Maharashtra, Tata Power, Infosys, Mahindra & Mahindra, Tata Steel, Wipro, TCS and HCL Technologies.
LIC chose to pare its holding in stocks like TVS Motor, Britannia Industries, RVNL, Tata Communications, L&T, Titan, Tata Motors, ICICI Bank and RIL.
In percentage terms, the biggest gainer in LIC’s portfolio has been Engineers India. The stock is up 96% so far in the calendar year and the state-owned insurer has kept its stake stagnant at 4.34%.
Aurobindo Pharma, whose shares are up 91% YTD, saw LIC trimming holding marginally by 2 bps to 5.55%. LIC’s portfolio has at least 12 stocks that have rallied at least 50%. Other top winners included Glenmark Pharma, RVNL, Suzlon Energy, Tata Motors, HAL and L&T Finance Holdings.
During the quarter, LIC reduced its stake in ITC marginally by 1 bps to 15.26%. Despite the rough patch in the last few days, the stock is still up around 41% this year.
Adani stocks remain among the worst performers in LIC portfolio in 2023 with Adani Total Gas and Adani Energy Solutions topping the list. Other top non-performers include PC Jeweller, Jet Airways, Rajesh Exports, Vakrangee and Shipping Corporation of India.
What should investors do?
One of the biggest reasons behind the bull run that has taken Nifty to record peaks near the 20,000-mark has been the robust inflow from FIIs. While any adverse newsflow may still trigger FII outflows, but
its impact on the market should be short lived, aided by support from a large and expanding domestic institutional base, according to analysts. Since 2015 DII flows have been more than double the FIIs flows
In the ongoing Q1 earnings season, the growth has been driven by financials, capex and discretionary companies while the commodity pack has been a drag.
“To play the economic upcycle in the Indian economy, it is advisable to have overweight positions in banks & financials, real estate & building material, industrial/engineering and select consumer companies. We also believe that pharma & healthcare could outperform over the next couple of years, both in the domestic formulations and generic formulation space,” said Gaurav Dua of Sharekhan.
Most large IT stocks missed earnings estimates and gave disappointing guidance. “Even outside IT services, demand for global discretionary spend in general could be an issue due to slowing demand in the developed markets. However, pharma stocks delivered better than expected results as US demand was higher than envisaged, driven by lower price erosion and supply disruptions in the US,” ICICI Securities said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)