{"id":56005,"date":"2025-05-06T16:28:00","date_gmt":"2025-05-06T10:58:00","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=56005"},"modified":"2025-07-24T18:48:54","modified_gmt":"2025-07-24T13:18:54","slug":"lics-47000-cr-in-fresh-investments-despite-volatility","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/lics-47000-cr-in-fresh-investments-despite-volatility\/","title":{"rendered":"LIC\u2019s \u20b947,000 Cr in Fresh Investments Push Portfolio to \u20b915.18 Lakh Cr"},"content":{"rendered":"
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Amidst volatility in the Indian stock market<\/a> and aggressive selling by foreign investors, Life Insurance Corporation of India (LIC) emerged as a steady hand. During the March 2025 quarter, LIC made significant equity purchases worth over \u20b947,000 crore, offering much-needed support to domestic markets. Alongside mutual funds<\/a> and retail investors, LIC played a key role in cushioning the blow from foreign capital outflows. Source: Moneycontrol<\/a><\/p>\n\n\n\n

Let\u2019s take a closer look at how LIC reshaped its equity portfolio during the quarter.<\/p>\n\n\n\n

LIC’s Portfolio Snapshot<\/strong><\/h2>\n\n\n\n

As of the March 2025 quarter (Q4), LIC held stakes in 351 stocks, a marginal decline from 352 in the previous quarter. The total value of its equity holdings stood at \u20b915.18 lakh crore, down from \u20b915.88 lakh crore in Q3. During this period, LIC increased its holdings in 105 stocks, trimmed its stake in 86 companies, exited or reduced its stake below 1% in 15 companies, and added 13 new stocks. Source: Moneycontrol<\/a><\/p>\n\n\n\n

Fresh Addition to LIC\u2019s Portfolio<\/strong><\/td>Net Buying (in Crore)<\/strong><\/td>Stocks Removed from LIC\u2019s Portfolio<\/strong><\/td>Net Selling (in Crore)<\/strong><\/td><\/tr>
IRFC<\/td>1814.9<\/td>Macrotech Developers<\/td>-1347.2<\/td><\/tr>
Jindal stainless<\/td>640.2<\/td>ICICI Securities<\/td>-485.6<\/td><\/tr>
KPIT Technologies<\/td>484.8<\/td>Piramal Pharma<\/td>-396.7<\/td><\/tr>
Punjab & Sind Bank<\/td>419.6<\/td>Paradeep Phosphates<\/td>-191.6<\/td><\/tr>
BLS International Services<\/td>178.8<\/td>Kaveri Seed Company<\/td>-73.3<\/td><\/tr>
JTL Industries<\/td>95.2<\/td>Texmaco Rail & Engeenering<\/td>-68.2<\/td><\/tr>
Enviro Infra Engineers<\/td>50.7<\/td>Gateway Distriparks<\/td>-40.0<\/td><\/tr>
Quality Power Electricals<\/td>50.1<\/td>Suraj Estate Developers<\/td>-22.6<\/td><\/tr>
Avalon Technologies<\/td>49.0<\/td>Divgi Torqtransfer systems<\/td>-18.4<\/td><\/tr>
Jai Corp<\/td>35.3<\/td>Yuken India<\/td>-12.2<\/td><\/tr>
Bombay Dyeing & Mfg.<\/td>21.0<\/td>SV Global<\/a> Mill<\/td>-4.6<\/td><\/tr>
Praveg<\/td>32.7<\/td>Aban Offshore<\/td>-4.6<\/td><\/tr>
<\/td><\/td>Reliance Home Finance<\/td>-2.5<\/td><\/tr>
<\/td><\/td>Binny Mills<\/td>-1.5<\/td><\/tr><\/tbody><\/table>
Source: Moneycontrol<\/a><\/figcaption><\/figure>\n\n\n\n

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13 New Additions in the Portfolio<\/strong><\/h2>\n\n\n\n

Among the newly added stocks in LIC\u2019s Q4 portfolio is IRFC, which acquired a 1.05% stake for \u20b91,815 crore. This was followed by investments<\/a> in Jindal Stainless and KPIT Technologies, with stakes of approximately 1.24% and 1.32%, valued at around \u20b9640 crore and \u20b9485 crore, respectively. Additionally, LIC received shares worth \u20b93,325 crore in ITC Hotels, representing a 9.22% stake, as part of the demerger from ITC Ltd.<\/p>\n\n\n\n

Major Investments by LIC<\/strong><\/h2>\n\n\n\n

Among its key acquisitions in Q4, LIC notably raised its stake in Hero MotoCorp, investing \u20b94,968 crore and increasing its shareholding from 5.53% to 11.84%. Its second-largest investment was in Reliance Industries Ltd, where it bought shares worth \u20b93,675 crore, taking its stake up from 6.52% to 6.74%. <\/p>\n\n\n\n

LIC also made substantial investments in Larsen & Toubro (\u20b92,975 crore), Asian Paints (\u20b92,466 crore), Hindustan Unilever (\u20b92,361 crore), and Bajaj Auto (\u20b91,983 crore). Additionally, LIC increased its holdings by over \u20b91,000 crore each in Bharat Electronics, Nestle India, LTIMindtree, Britannia Industries, and ITC.<\/p>\n\n\n\n

LIC Increases Stake in Existing Holdings<\/strong><\/td><\/tr>
<\/td>No. of Shares ( in Crore)<\/strong><\/td>Net Buying (in Crore)<\/strong><\/td><\/tr>
<\/td>March 2025 quarter<\/strong><\/td>Dec 2024 quarter<\/strong><\/td>Difference<\/strong><\/td><\/tr>
Hero Motocorp<\/td>2.4<\/td>1.1<\/td>1.3<\/td>4967.8<\/td><\/tr>
Reliance Industries<\/td>89.4<\/td>86.4<\/td>3.0<\/td>3674.9<\/td><\/tr>
Larsen & Toubro<\/td>18.0<\/td>17.1<\/td>0.9<\/td>2975.2<\/td><\/tr>
Asian Paints<\/td>7.9<\/td>6.9<\/td>1.1<\/td>2466.3<\/td><\/tr>
Hindustan Unilever<\/td>14.1<\/td>13.1<\/td>1.0<\/td>2361.5<\/td><\/tr>
Bajaj Auto<\/td>0.7<\/td>0.4<\/td>0.2<\/td>1983.2<\/td><\/tr>
SBI<\/td>82.9<\/td>80.7<\/td>2.2<\/td>1652.9<\/td><\/tr>
Patanjali Foods<\/td>2.8<\/td>1.9<\/td>0.9<\/td>1638.3<\/td><\/tr>
Tata Motors<\/td>11.6<\/td>9.4<\/td>2.2<\/td>1577.2<\/td><\/tr>
Maruti Suzuki India<\/td>1.5<\/td>1.4<\/td>0.1<\/td>1493.4<\/td><\/tr>
HCL Technologies<\/td>13.1<\/td>12.3<\/td>0.8<\/td>1441.6<\/td><\/tr>
Indraprastha Gas<\/td>13.2<\/td>6.4<\/td>6.8<\/td>1332.9<\/td><\/tr>
Bharat Electronics<\/td>13.8<\/td>9.2<\/td>4.6<\/td>1269.8<\/td><\/tr>
Nestle India<\/td>4.5<\/td>4.0<\/td>0.5<\/td>1187.1<\/td><\/tr>
LTMindtree<\/td>2.3<\/td>2.1<\/td>0.2<\/td>1136.9<\/td><\/tr><\/tbody><\/table>
Source: Moneycontrol<\/a><\/figcaption><\/figure>\n\n\n\n

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LIC Trims Holdings in Key Financial and Tech Stocks<\/strong><\/h2>\n\n\n\n

On the divestment front, LIC reduced its stake in ICICI Bank by \u20b91,987 crore, bringing its holding down to 6.8% from 7.14%. In the technology sector, it trimmed its investments in Infosys, Tata Consultancy Services, and Wipro<\/a>, offloading shares worth \u20b91,652 crore, \u20b91,625 crore, and \u20b91,234 crore, respectively.\u00a0<\/p>\n\n\n\n

As a result, its revised stakes now stand at 10.45% in Infosys (down from 10.58%), 4.63% in TCS (from 4.75%), and 2.67% in Wipro (from 3.08%). Additionally, LIC scaled back its positions in several other companies, including Pidilite Industries, Divi\u2019s Laboratories, Coromandel International, Bajaj Finserv, JSW Energy, Bajaj Finance, and HDFC Bank, with divestments ranging between \u20b9300 crore and \u20b9800 crore.<\/p>\n\n\n\n

LIC Reduces Stake in Existing Holdings<\/strong><\/td><\/tr>
<\/td>No. of Shares ( in Crore)<\/strong><\/td>Net Selling (in Crore)<\/strong><\/td><\/tr>
<\/td>March 2025 quarter<\/strong><\/td>Dec 2024 quarter<\/strong><\/td>Difference<\/strong><\/td><\/tr>
ICICI Bank<\/td>39.4<\/td>41.0<\/td>-1.6<\/td>-1987.0<\/td><\/tr>
Infosys<\/td>38.8<\/td>39.7<\/td>-0.9<\/td>-1652.5<\/td><\/tr>
TCS<\/td>16.8<\/td>17.2<\/td>-0.4<\/td>-1624.0<\/td><\/tr>
Wipro<\/td>28.0<\/td>32.2<\/td>-4.2<\/td>-1233.9<\/td><\/tr>
Pidilite Industries<\/td>1.7<\/td>2.0<\/td>-0.3<\/td>-791.0<\/td><\/tr>
Divi\u2019s Laboratories<\/td>1.5<\/td>1.6<\/td>-0.1<\/td>-605.3<\/td><\/tr>
Coromandel International<\/td>0.5<\/td>0.7<\/td>-0.2<\/td>-417.4<\/td><\/tr>
Bajaj Finserv<\/td>4.1<\/td>4.3<\/td>-0.2<\/td>-338.5<\/td><\/tr>
JSW Energy<\/td>11.5<\/td>12.1<\/td>-0.6<\/td>-318.6<\/td><\/tr>
Bajaj Finance<\/td>1.7<\/td>1.8<\/td>0.0<\/td>-313.5<\/td><\/tr>
HDFC Bank<\/td>36.1<\/td>36.3<\/td>-0.2<\/td>-309.1<\/td><\/tr>
Jubilant Foodworks<\/td>1.2<\/td>1.7<\/td>-0.5<\/td>-307.7<\/td><\/tr>
SRF<\/td>1.4<\/td>1.5<\/td>-0.1<\/td>-247.3<\/td><\/tr>
Lupin<\/td>0.9<\/td>1.0<\/td>-0.1<\/td>-206.4<\/td><\/tr>
Tata Power<\/td>9.4<\/td>10.0<\/td>-0.6<\/td>-199.8<\/td><\/tr><\/tbody><\/table>
Source: Moneycontrol<\/a><\/figcaption><\/figure>\n\n\n\n

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LIC\u2019s Rs 47,000 Crore Equity Buying: Why It Matters<\/strong><\/h2>\n\n\n\n

The scale of LIC\u2019s equity purchases over Rs 47,000 crore in one quarter is significant for multiple reasons:<\/p>\n\n\n\n

1. Market Stabilization Role<\/strong><\/h3>\n\n\n\n

LIC stepped in when FIIs turned net sellers due to global economic concerns, including interest rate uncertainty and geopolitical tensions. Such buying helped prevent deeper market falls and injected confidence among domestic investors.<\/p>\n\n\n\n

2. Support for Mid and Small-Caps<\/strong><\/h3>\n\n\n\n

Many of the stocks in which LIC accumulated shares were in the mid-cap and small-cap segments. These segments often face higher volatility during FII outflows, so LIC\u2019s buying likely helped stabilize prices and support valuation levels.<\/p>\n\n\n\n

3. Long-Term Investment Strategy<\/strong><\/h3>\n\n\n\n

Unlike many short-term institutional players, LIC typically invests with a long-term horizon. It’s buying signals long-term confidence in the fundamentals of Indian companies, encouraging retail and mutual fund investors to follow suit.<\/p>\n\n\n\n

Disappearance of 15 Companies<\/strong><\/h2>\n\n\n\n

The 15 companies from which LIC\u2019s name disappeared from the shareholding data include Aban Offshore, Binny Mills, Divgi Torqtransfer Systems, Futura Polyesters, Gateway Distriparks, Kaveri Seed Company, Macrotech Developers, Paradeep Phosphates, Piramal Pharma, Reliance Home Finance, Suraj Estate Developers, SV Global Mill, Texmaco Rail & Engineering, and Yuken India Ltd.<\/p>\n\n\n\n

These exits could be attributed to factors such as weak performance or governance issues within some companies, sector-specific challenges, or a strategic redeployment of funds into stocks with stronger growth potential.<\/p>\n\n\n\n

March 2025: A Volatile Quarter in Indian Markets<\/strong><\/h2>\n\n\n\n

Indian markets witnessed notable volatility in Q4, with benchmark indices Sensex<\/a> and Nifty<\/a> registering declines of 0.9% and 0.5%, respectively. The broader BSE<\/a> MidCap and SmallCap indices saw steeper corrections, falling over 10.6% and 15.5%. The March 2025 quarter was marked by:<\/p>\n\n\n\n