LIC share price: Despite selling in the insurance stocks last week, shares of the Life Insurance Corporation (LIC) of India registered decent buying throughout the week. LIC share price has been on an uptrend for the last six successive sessions, logging around 11 per cent weekly gain.
According to stock market experts, the LIC share price is rising for two reasons: the insurance regulator raises concerns over bancassurance exposure and entry in the F&O segment. They said LIC shares are still available at a discounted price and looking positive on the technical chart pattern. Assigning a ‘stock to buy’ tag to LIC shares, experts predicted a ₹1,200 LIC share price target for the long term.
Triggers for LIC share price
On triggers fueling LIC’s share price today, Sugandha Sachdeva, Founder of SS WealthStreet, said, “Following its entry into the F&O segment, the LIC share price has been on an uptrend with strong trading volumes observed in the previous session. The positive momentum was further bolstered by news of its strategic expansion plans, including key acquisitions in the health insurance sector, which have further improved investor sentiment.”
On LIC’s financials, Sugandha Sachdeva said, “In Q2FY25, LIC reported a 3.8% decline in net profit, attributed to higher benefit payouts. However, an 11.6% YoY growth in net premium income was driven by an improving product mix and an increasing share of high-margin offerings. This shift towards more profitable products reflects LIC’s strategic efforts to enhance operational efficiency and profitability.”
IRDAI push to LIC shares
On IRDAI concern over bancassurance exposure of insurance companies helped LIC share price rally, Abhishek Pandya, Research Analyst, StoxBox, said, “On Thursday, news reports highlighted concerns raised by the IRDAI regarding bancassurance. The IRDAI urged insurers to reduce the business conducted through bank partnerships by up to 50%. As a result, insurance companies saw a significant decline in their stock prices. However, LIC was not as severely affected due to its diversified business model, which relies heavily on its extensive network of agents and proprietary distribution channels. This positions LIC to withstand regulatory changes in the bancassurance sector, making it less vulnerable to such shifts. Therefore, we remain positive about LIC shares from a medium to long-term perspective.”
LIC share price target
Expecting more upside in LIC shares, Sugandha Sachdeva said, “LIC share price has gained nearly 11 per cent this week, forming a higher-highs pattern and closing decisively above its 100 and 200-DEMA. While the stock may witness short-term resistance around the ₹1000 mark, the overall outlook remains positive. From a medium-term perspective, key support for the stock is pegged at ₹860 to ₹840 zone. Investors looking to enter the stock can consider accumulating on dips around ₹940, with a medium-term target of ₹1080 and a potential upside towards ₹1200.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
