Sentiment is affected due to carnage in the broader market. Though there is some recovery today and yesterday, many stocks have corrected sharply from the recent high.
LIC's market capitalisation slipped to Rs 5.57 lakh crore in early trade against just over Rs 6 lakh crore at the issue price, eroding over Rs 42,500 crore in investor wealth due to the tepid listing.
Policyholders and retail investorsLIC policyholders and retail investors have got the shares at a price of Rs 889 and Rs 904 apiece, respectively, after taking into account the discount offered.
LIC had fixed the issue price of its shares at Rs 949 apiece after a successful initial public offering, which fetched Rs 20,557 crore to the government.
Securities said, "Those who missed to apply for the LIC IPO are advised to wait for few sessions as it has opened at a discounted price only because of the weak stock market sentiments.
As that factor still exists, one should wait for the stock to stabilize and enter when there is big fall in LIC stock maintaining stop loss at ₹735 levels.