Winning Bizness Desk

Mumbai. The government has denied the opposition's allegation of reducing the valuation of LIC and pointed out that market capitalization of a listed company keeps on changing depending on the small amount of shares traded in the market. The opposition had blamed the govt saying it had reduced the valuation of LIC in just two months. Minister of State for Finance Bhagwat Karad gave this information to the Rajya Sabha in a written reply to a question.

Actually, the Leader of Opposition in the Upper House, Mallikarjun Kharge, had asked a question asking "Is it true that the government has reduced the valuation of LIC from Rs 14 lakh crore to Rs 6 lakh crore in just two months." Replying to this query, Karad said, "No."

Many factors affect the buy-trade price

He said that the market capitalization of a listed company keeps on changing depending on the small amount of shares traded in the market. He said that there are many factors which affect the buy-trade price. Such as geopolitical factors, the global and national macroeconomic environment and perceptions of market participants regarding the prospects of a company. Karad said that for a newly listed company, the market performance of a particular stock needs to be analyzed on a medium to long term basis.

The market capitalization of LIC stood at Rs 4,35,634 crore on the Bombay Stock Exchange (BSE) on Tuesday. LIC's stock recorded a fall yesterday. It closed at Rs 688.75, down 1.09 per cent or Rs 7.60 on the BSE. The 52-week low of this stock is Rs 650 and the maximum level is Rs 920.