LIC share price rallies 5% in weak market, hits 4-month high; here's why

NSE IPO impact: Shares of LIC were quoting higher for the sixth straight trading day, rallying 15 per cent during the period.

LIC stock price movement

 

Share price of Life Insurance Corporation of India (LIC) hit a four-month high at ₹450, as the stock rallied 5 per cent on the BSE in Friday’s intra-day deals amid heavy volumes in an otherwise weak market. The stock price of the government-owned insurance company was quoting at its highest level since February 10, 2026.

 

Shares of LIC were quoting higher for the sixth straight trading day, rallying 15 per cent during the period. The stock bounced back 25 per cent from its 52-week low of ₹361 (adjusted to 1:1 bonus issue) touched on April 2, 2026. LIC stock hit a 52-week high at ₹490.03 on June 30, 2025.

 

 

At 10:30 AM on Friday, LIC traded 3 per cent higher at ₹443.50, as compared to 0.9 per cent decline in the BSE Sensex. The counter saw huge trading volumes, with a combined 6.78 million shares changing hands on the NSE and BSE.

 

What’s driving LIC stock price?

 

The National Stock Exchange’s (NSE’s) long-awaited initial public offering (IPO) is set to unlock massive gains for a wide spectrum of shareholders - from public sector lenders and insurers to offshore wealth funds and pension managers.

 

Shares of several listed firms holding a stake in the NSE are in focus after the exchange filed draft papers for its IPO with the Securities and Exchange Board of India (Sebi) on Wednesday. The proposed public issue is entirely an offer for sale (OFS) of 148.9 million shares, under which existing shareholders will collectively divest nearly 6 percent stake in the stock exchange.

 

NSE is the largest exchange in the country. Established in 1992, it saw initial investments from institutions such as IDBI, LIC, and State Bank of India (SBI).

 

While LIC, the largest shareholder in the exchange, is not selling any stake in the near ₹30,000 crore OFS, SBI and other institutional investors are collectively offering a 6 per cent stake, estimating NSE’s valuation at around ₹5 trillion, the Business Standard reported. READ MORE

 

JM Financial Institutional Securities view on LIC

 

LIC reported strong results for the January to March 2026 quarter (Q4FY26). The insurer's individual annual premium equivalent (APE) grew by 16 per cent, higher than reported retail weighted received premium (RWRP) growth of 13 per cent, and group APE rose by 37 per cent. Thus, total APE grew by 22 per cent.  Value of new business (VNB) margin of 21.2 per cent in FY26 implies a very strong 24.9 per cent margin in Q4. Margin expanded by 360 basis points (bps) YoY in FY26 led by ~3 per centage points (pps) gain each from product mix and improved economic assumptions, and hit by 3pp from operating assumptions. 

 

Diversifying product mix with improving margins augurs well for LIC, providing resilience to growth. The stock has remained range-bound as weak markets ensured that embedded value (EV) remained below September 2024 levels. As macros improve, EV will grow here on – with an improving growth profile – with unwind of 9 per cent plus and VNB of 2 per cent of opening EV. With a solid outlook, analysts at JM Financial Institutional Securities post the Q4 results raised anticipated target price on the stock to ₹480 (from ₹444 earlier).

 

Meanwhile, according to IRDA, the market share by first premium income for the year ending March 31, 2026, was 56.6 per cent as compared to 57.05 per cent for the year ended March 31, 2025. Therefore, LIC said they continue to maintain their leadership in the Indian insurance market across both individuals and group business segment.

 

In the Q4 earnings conference call, LIC management stated they are now very confident, having achieved significant directional changes, and are on a path of superior growth with a sharper focus on enhanced performance parameters.  ========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.