LIC buying shares of State Bank India

Indonesia stock info ; why LIC buying shares of State Bank India ; Insurance major Life Insurance Corporation (LIC) splurged on buying shares of State Bank of India when its share price dipped to lowest levels in 52 weeks during the October-December quarter. Acting chairman DK Mehrotra on Thursday said LIC’s investment in capital markets during this financial year would be the same as last financial year.

As per the shareholding data sent to stock exchanges, LIC raised its shareholding in SBI by 5.40 per cent to 12.76 per cent in the December quarter.

The 5.40 per cent stake implies an investment of more than Rs 5,000 crore at last quarter's average price of the stock. LIC’s current holding in SBI is highest ever over the past five years. The SBI stock is trading more than 50 per cent down from its high of Rs 3,500 hit at the end of 2010.

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