Wednesday, January 9, 2013

LIC Stake in Infosys Technologies

India's largest Life Insurer, Life Insurance Corporation of India (LIC), has hiked its stake in Infosys to 7.24% by purchasing additional 2.32% shares in the company so far this financial year. The company held 4.92% stake in Infosys at the beginning of the current fiscal on April 1, 2012.

At current market price of Rs 2350 the LIC's stake is worth around Rs 9700 crores which is highest among all the institutional investors in the company. Besides LIC, a number of other large investors also hiked their stake in Infosys during 2012. These include foreign funds like Oppenheimer, Franklin Templeton, Aberdeen and Vanguard.

Renewed interest of large institutional investors in the company seems justified considering the undervaluation, under ownership and under performance of the company since past one year. Infosys has one of the highest governance standard, best quality management and superior return history. Institutional investors seems to be taking advantage of negative sentiments around the company and accumulating large number of stock at lower levels.

Infosys is also one of our top contra bets for 2013. Read the full analysis below on contrarian stocks to bet on in 2013.


  1. Dear Amit,
    Agreed for Infosys as a contrarian bet. I am really surprised for all the other analyst, who were betting to short Infosys on account of low / flat Q3 guidance. I don't know really how they come up with such statements and make fool of the investors and traders. Do they really have any insight on the basis of which they make such estimates?


  2. You are right Ujjwal, most of the anlysts on the channels make people fool and they are actually good for nothing. They are being paid for doing what everybody else is doing.

    In my 8 years of experience in stock markets, the lesson I have learned very hard way is to not chase stocks which are moving in either direction and rather think opposite of buy when market sells and selling when market buys.

  3. I like your quote *buy when market sells and selling when market buys*. I think its the key of making money in stock market.


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