LIC’s ₹25,000 Cr Portfolio Reset: Bets on Reliance, TCS, Mazagon; Trims HDFC, ICICI, Divi’s
- 5th August 2025
- 12:00:00 PM
- 3 min read
Mumbai | August 5 – Life Insurance Corporation of India (LIC), India’s largest domestic institutional investor, sharply increased its equity exposure in Q1FY26, deploying over ₹25,000 crore into the stock market. According to stock exchange disclosures, the insurer’s equity portfolio rose 10% sequentially to ₹16.84 lakh crore as of June-end 2025.
The insurer raised stakes or made fresh investments in more than 60 companies during the quarter, reflecting a rotation away from financials into defence, infrastructure, and large-cap IT.
Reliance Industries was the top incremental buy, with LIC investing ₹3,841 crore. The insurer is aligning its portfolio with themes like energy transition and telecom infrastructure. The second-highest infusion was in Info Edge (₹3,285 crore), followed by Tata Consultancy Services (₹2,888 crore), Infosys (₹2,521 crore), Hindustan Unilever (₹2,324 crore), and HCL Tech (₹2,260 crore), all reflecting bullishness on consumption, digital services, and export-oriented themes. In manufacturing and infrastructure, stakes in Tata Motors (₹1,883 crore) and Larsen & Toubro (₹1,791 crore) were also increased.
LIC entered 10 new counters in the June quarter. The biggest bet was Mazagon Dock Shipbuilders at ₹4,283 crore, followed by Siemens (₹1,438 crore), IREDA (₹1,058 crore), and Firstsource Solutions. These moves reflect LIC’s rising interest in defence PSUs, renewables, and tech-enabled platforms. The entry into IREDA is also in line with ESG-aligned allocation strategies.
The insurer pared exposure in 72 companies, largely in financials. It trimmed stakes in HDFC Bank by ₹3,750 crore, ICICI Bank by ₹3,489 crore, and also reduced holdings in Axis Bank. In pharmaceuticals, it cut its position in Divi’s Labs by ₹3,062 crore. Reductions were also seen in Bharti Airtel, Kotak Mahindra Bank, and Apollo Hospitals. The strategy appears to be driven by profit booking and rebalancing from segments facing near-term headwinds.
LIC exited 14 companies entirely or dropped holding below 1%. This included Coromandel International (prior value ₹1,152 crore), Sanofi Consumer Healthcare (₹743 crore), and Ceat Ltd (₹175 crore), among others. Most exits were in midcap or underperforming names, pointing to active churn and a more nimble investment approach.
Despite these moves, the portfolio faced sharp mark-to-market losses in July as markets corrected. The total estimated hit stands at ₹66,000 crore. Reliance alone saw ₹10,146 crore erosion, while TCS, Infosys, HCL Tech, IDBI Bank, and Axis Bank also saw drawdowns. These losses are likely tactical setbacks in LIC’s broader long-term allocation cycle.
The Q1FY26 portfolio activity suggests a realignment in favour of policy-aligned sectors such as defence, energy, infrastructure, and technology. Simultaneously, the trimming in private banks and healthcare signals rising selectivity and willingness to rotate capital aggressively. LIC’s equity deployment strategy continues to serve as a crucial market indicator for both retail and institutional investors navigating volatility.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
