LIC to remain range-bound as Rajesh Exports' developments unfold: Analysts

LIC holds 10.8% stake in Rajesh Exports; Market expert Ajit Mishra of Religare Broking expects LIC to consolidate in the near-term, with charts indicating support at ₹385 levels.

Life Insurance Corporation (LIC) of India stock declined 1.5 per cent to an intra-day low of ₹396.60 on the NSE in Thursday's trading session amid concerns over its holding in fraud-hit Rajesh Exports.  The Securities and Exchange Board of India (Sebi) on June 3 barred Rajesh Mehta, promoter and executive chairman of jewellery firm Rajesh Exports, from dealing in the company's securities for three years over alleged financial misstatements and regulatory violations.  Sebi alleged misrepresentation to the tune of ₹15.15 trillion, or 99.8 per cent, of the company's revenues attributed to subsidiaries between FY21 and FY25. In Thursday's trading session Rajesh Exports was locked at the 5 per cent lower circuit at ₹103.92, with trades of around 1.12 lakh shares, and pending sell order for 21.59 lakh shares on the NSE. READ MORE  According to the March 2026 shareholding pattern, LIC owns up to 10.8 per cent stake or around 31.88 million equity shares of Rajesh Exports. At 1.40 PM on Thursday, LIC traded with a loss of 1 per cent at ₹399. The counter saw trades of around 18 lakh shares on the NSE.  Ajit Mishra, SVP Research at Religare Broking reckons that it would be too early to attribute today's fall in LIC stock to its holding in Rajesh Exports. The analyst says the one need to understand the impact after considering the holding in its overall portfolio.  "To understand the likely impact, we need to understand the quantum (size) of Rajesh Exports holding in LIC's overall portfolio. Hence, it would be too early to comment on this now," says Mishra. 

LIC stock outlook

  Mishra believes that LIC's price action today was more or less in the subdued broader market trend. He further adds that the stock may witness tepid trend over the next few trading days as it recently turned ex-bonus.  LIC turned ex-bonus on May 29, 2026, as the stock price was adjusted for the 1:1 bonus share as per the record date.  "In general, it has been observed that stocks tend to trade sideways or dip in the following days after turning ex-bonus," says the analyst. 

 

  Technically, Mishra believes the stock could dip toward ₹385 levels on the downside, wherein supportive buying for the stock may emerge. On the upside, he expects resistance around ₹415-₹425 levels. The resistance zone coincides with the 200-day moving average (200-DMA), which stands at ₹420.  He reckons, that LIC stock needs to break and sustain above ₹425 levels for the overall trend to turn favourable. Till such time, the stock may trade in the range of ₹385-₹425, he adds.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.