LIC Surpasses SBI: Emerges as the Most Valuable Public Sector Undertaking

Life Insurance Corporation of India (LIC), the government-owned insurance giant, has surpassed the State Bank of India (SBI) to emerge as the most valuable Public Sector Undertaking (PSU) in India. In the early trades today on January 17, 2024, LIC’s Market Capitalization (MCap) reached ₹5.70 lakh crore, outpacing SBI’s MCap of ₹5.68 lakh crore, marking a significant milestone for LIC as it reclaims its premier status among PSUs.

LIC’s Stock Rally

LIC’s shares exhibited an impressive rally of over 2%, achieving a fresh 52-week high at ₹918.45 and propelling its market value beyond the ₹5.70 lakh crore-mark. This remarkable feat underscores LIC’s robust fundamentals and its resilience in navigating through market volatility. Additionally, it highlights the pivotal role of the insurance sector in contributing to India’s economic landscape. LIC’s success is a testament to the unwavering trust millions of Indians have bestowed upon the corporation over the years.

SBI’s Stock Decline

On the other hand, SBI losing its title as India’s most valuable PSU comes amid its stock dropping nearly 2.5% this month. SBI is India’s biggest public sector bank and has been running since the year 1955. SBI’s share price is currently trading around the ₹624 mark, and its market cap stands at ₹5.6 lakh crore.

India’s Top 5 PSU Stocks

According to a report by India Times, the top five PSU stocks in India by market cap are:

1. Life Insurance Corporation of India (LIC): Founded in 1956, LIC is India’s largest insurance company, and now also the most valuable PSU stock. In May 2022, the insurance had launched India’s biggest ever IPO. LIC’s share price is currently trading around the ₹892 mark, and has a market cap of ₹5.65 lakh crore.
2. State Bank of India (SBI): India’s biggest public sector bank SBI has been running since the year 1955. It is currently the second most valuable PSU stock, with a market cap of ₹5.6 lakh crore, and trading at a share price of ₹624.
3. National Thermal Power Corporation (NTPC): Founded in 1975, NTPC Limited, which was formerly known as National Thermal Power Corporation, is PSU under the ownership of the Ministry of Power and the Government of India. NTPC is primarily engaged in the generation and distribution of electricity to the State Electricity Boards across India. NTPC share price currently trades around the ₹311.8 mark, and its market cap stands at ₹3.02 lakh crore.
4. Oil and Natural Gas Corporation (ONGC): Founded in 1956, the Oil and Natural Gas Corporation Limited (ONGC) is a PSU under the ownership of Ministry of Petroleum and Natural Gas, Government of India. It is India’s largest crude oil and natural gas producer. ONGC share price currently trades around the ₹233 mark, and its market cap stands at ₹2.93 lakh crore.
5. Coal India: Founded in 1975, Coal India Ltd is a PSU under the ownership of the Ministry of Coal, Government of India.

Conclusion

LIC’s ascendancy to becoming the most valuable PSU in India is not only a significant achievement but also holds broader implications for the insurance sector. It exemplifies LIC’s strong fundamentals and adept handling of market dynamics, likely contributing positively to the Indian economy and further bolstering confidence in the insurance sector. LIC’s success is not ju