LIC, GIC and New India Assurance Suffer ₹13,740 Crore Notional Loss in ITC Stake Decline
New Delhi:
India’s leading public sector insurance companies have faced a sharp notional loss of ₹13,740 crore in just two trading sessions due to a steep fall in ITC share price.
LIC Takes the Biggest Hit
Life Insurance Corporation of India (LIC), which holds a 15.86% stake in ITC, saw the value of its investment drop significantly.
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Stake value on December 31: ₹80,028 crore
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Stake value on January 2: ₹68,560 crore
This translates into a notional loss of ₹11,468 crore for LIC within two days.
Losses for GIC and New India Assurance
Other government-owned insurers also felt the impact:
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General Insurance Corporation of India (GIC)
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Stake: 1.73%
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Notional loss: ₹1,254 crore
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New India Assurance Company
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Stake: 1.4%
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Notional loss: ₹1,018 crore
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Combined Loss in Two Days
Together, LIC, GIC, and New India Assurance have suffered a combined notional loss of ₹13,740 crore due to the decline in ITC’s market valuation.
What Is a Notional Loss?
It is important to note that this loss is notional, meaning it exists only on paper. The actual loss will be realized only if the shares are sold at the lower price. Long-term investors like LIC and GIC usually hold quality stocks such as ITC for extended periods.
Market Outlook
Market experts believe that short-term volatility is common in large-cap stocks. ITC remains a fundamentally strong company, and long-term investors may continue to monitor price movements and future business developments.
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