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Faith of Millions of Small Investors Put to Test With LIC Debut

  • Listing challenged by weak sentiment amid war, rate hikes
  • Shares of many Indian state-run firms struggled after debuting
The Life Insurance Corp. of India headquarters in Mumbai.
The Life Insurance Corp. of India headquarters in Mumbai.Photographer: Dhiraj Singh/Bloomberg
Updated on

Millions of Indians investing in the country’s biggest listing could turn sour on the equity market if the stock follows the poor performance of its state-run predecessors.

Prime Minister Narendra Modi’s government raised $2.7 billion by selling shares in Life Insurance Corporation of India, including to millions of families nationwide that hold LIC policies. The stock starts trading Tuesday at a time when markets worldwide are being roiled by the fallout of Russia’s invasion of Ukraine and rising interest rates.