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LIC likely to buy more G-secs in current fiscal

State-owned Life Insurance Corporation of India (LIC) might buy more government securities (G-secs) in the current financial year if yields were attractive, said a senior company official. India’s largest insurance firm has planned to invest Rs 62,000 crore in G-secs in FY10, as compared to Rs 56,000 crore in the previous year ended March 2009. With fiscal deficit at a record high, the Centre is planning to borrow Rs 3,62,000 crore from the market and this has increased the supply of bonds, putting pressure on bond prices. Lower bond prices increases yield on G-secs, and this would ...