InvestorQ : Is it true that the equity market fall has forced LIC to take a hit of Rs40,000 crore?
Riya Dwivedi made post

Is it true that the equity market fall has forced LIC to take a hit of Rs40,000 crore?

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shrinidhi Rajan answered.
4 weeks ago
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LIC has apparently taken a hit of Rs40,000 crore on valuations due to the sustained fall in equity markets and rising interest rates affecting debt values. For LIC, the mark-to-market (MTM) losses have been in the region of Rs40,000 crore till March 2022. For every 10% fall in the equity markets, the LIC embedded value falls by 6.5%. This loss was caused by the equity markets falling 14% and the bond markets taking a hit on rising yields. Clearly, that is not going to help the stretched valuations of LIC.

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