LIC stocks soar on PM Modi's praise for PSU performance

LIC shares surged following Prime Minister Narendra Modi's praise for the performance of Public Sector Undertakings (PSUs). Modi stated that there is an increasing confidence in PSU companies among the public, noting a significant rise in their net worth over recent years.

On February 7, LIC shares closed trading at Rs 1,045 on the BSE, marking a 1.98 percent increase. During intraday trading, it reached a 52-week high of Rs 1,050.50. This uptick was attributed to Modi's remarks regarding the growing confidence in PSU companies.

Modi's comments come amidst a period of robust performance for Indian PSU companies. The Nifty PSE, for instance, outperformed the Nifty with a 108 percent return between the FY23 and FY24 interim budgets, compared to Nifty's 23 percent.

Furthermore, LIC is expected to consider declaring an interim dividend for the financial year 2023-24 on February 8, coinciding with the release of its quarterly results for December 2023. Last week, the state-run insurer had announced that its board of directors would convene on February 8 to review and approve the unaudited financial results for Q3 FY24.