In a day when Nifty is trading with gains of more than 3%, LIC hasn't been far behind either, with the shares surging in trade on Wednesday. The stock is currently trading at around Rs 780, accounting for gains of 5% compared to Tuesday's closing price.
While much of the positive sentiment is being drawn from the recent ceasefire agreement between the United States and Iran that will momentarily put an end to hostilities, with Iran reopening the Strait of Hormuz for two weeks, there was also a key development within LIC yesterday.
The company informed in a regulatory filing on Tuesday that it is considering its first-ever bonus share issue. Accordingly, the Board of Directors is slated to meet on April 13 to mull the issuance of bonus shares, as per the filing.
However, the proposal is subject to approval from the shareholders of the Corporation and will be done in accordance with the applicable provisions.
ALSO READ: LIC Mulls First-Ever Bonus Share Issue; Board To Meet Next Week
Should You Buy LIC?
From a technical point of view, LIC's stock price has witnessed a pullback move with the broader market, and faces 50 DMA hurdle around Rs 805, according to Ruchit Jain, Vice President, Equity Technical Research, Wealth Management, Motilal Oswal Financial Services, who believes investors can look for a buy on dip approach.
"Prices have witnessed a pullback move along with the broader markets in today's session. The 50 DMA hurdle for the stock is placed around Rs. 805, which will be seen as the immediate hurdle. On positional charts, support is placed around Rs. 700," he said.
"Positional traders can keep a buy on dip approach and look for buying opportunities in declines," he added.
ALSO READ: Largecap Stocks With Biggest Discounts As Nifty, Sensex Rebound
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