Life Insurance Corporation of India (LIC) increases stake in Tata Steel to 11.08 per cent

Life Insurance Corporation Of India (LIC), the largest investor in the market, increased its stake in Tata Steel to 11.08 per cent in the June quarter. During this time, LIC has increased its stake by more than 2 per cent. However, if the stake of other companies is included, the stake of insurance companies in Tata Steel is above 17 per cent. On the other hand, analysts believe that the steel sector is currently in a boom. That is why companies are increasing their stake in steel.

 

Holdings of the stock exchange show that LIC has increased its stake by 2 per cent to over 11 per cent in the June quarter. Tata Steel's share was close to Rs 250 in April while now it stands at Rs 351. On the other hand, statistics show that during the month of April and May when there was a lockdown in the country, China was the largest exporter of steel from India. Out of the total steel exports of the country, 48 per cent of steel was exported to China. According to data from the Joint Plant Committee (JPC), between April 1 and May 31, 4.40 lakh tonnes of finished steel were exported to China. While the export of semis was 40 tonnes during the same period. Jayanta Rai, vice-president of rating agency Icra, said that India's finished steel exports in the first two months of the current financial year increased by 76 per cent compared to a year ago. China alone accounts for about 60 per cent of these increased export. This year, 4.40 lakh tonnes of steel have been exported from India.

 

Domestic steel demand in the country has come down considerably. For this reason, primary and secondary steel producers are focusing on exports. Recently, Tata Steel MD TV Narendran said that more steel is being exported to China because there is strong demand. China is now focusing on steel imports rather than iron imports. Explain that China is the largest country among iron and exporting countries. Iron ore prices were at $ 83 a tonne in March, which is currently close to $ 103. China produced 92.3 million tonnes of crude steel in May 2020. This is 4.2 per cent higher than in May 2019.