India's leading financial institution Life Insurance Corporation has picked up 2.5 per cent stake in Tata Consultancy Services for about Rs 127.50 crore (Rs 1.27 billion), as part of its strategy to pump in over Rs 6,000 crore (Rs 60 billion) in the equity market this fiscal.

"We have invested in TCS IPO. After allotment of the shares, our holding was about 2.5 per cent," LIC chairman S B Mathur said in New Delhi on Thursday.

LIC has obtained 14-15 lakh (1.4-1.5 million) shares of TCS for Rs 850 a share.

TCS shares has now appreciated to over Rs 1,050 when it was listed at major bourses on Wednesday, which resulted in a profit of over Rs 30 crore (Rs 300 million) to LIC within a few days.

Mathur said the corporation was also looking at good initial public offers. Some of the major companies like NTPC, Hutch and others are planning to hit the market this fiscal. "We had invested about Rs 5,000 crore (Rs 50 billion) in equities last fiscal. This fiscal, the amount could be Rs 5,000-6,000 crore (Rs 50-60 billion).

It could be even more if our asset base goes up," Mathur said.

LIC had booked an unrealised gain of Rs 40,000 crore (Rs 400 billion) from gilts and equities last fiscal.

Asked about interest rate scenario, Mathur said it was unlikely to change in the short term and inflation would come down after some time.

The rise in yields on government papers have resulted in profits to LIC, he said.

LIC has logged a total income of Rs 92,000 crore (Rs 920 billion) last fiscal, of which Rs 62,000 crore (Rs 620 billion) was from premium income.