New Delhi 29 July 2025 : The stock market downturn in July has not only shaken retail investors but also caused significant losses to the Life Insurance Corporation of India (LIC). LIC’s equity portfolio registered a loss of nearly ₹46,000 crore — a red flag raising concerns over large institutional investment strategies.
Market Trends and LIC’s Impact
As of June 30, 2025, the value of LIC’s 322-stock portfolio stood at ₹16.10 trillion (₹16.10 lakh crore). By July 25, 2025, this value had fallen to ₹15.64 trillion, marking a loss of ₹46,000 crore. Still, LIC’s total assets are ₹1.94 trillion higher compared to April 7, 2025, indicating strong early-year performance.
Stocks That Became a Burden
Among LIC’s largest holdings, Reliance Industries caused the most pressure. In addition, four major IT companies — TCS, Infosys, HCL Tech, and Tech Mahindra — together led to losses of around ₹15,321 crore. These contributed significantly to the decline in LIC’s portfolio.
LIC’s Portfolio Rebalancing
During the June quarter, LIC reduced its stake in 81 companies while increasing investments in four public sector defense companies. This move shows that LIC is strategically shifting towards more stable and secure sectors to balance its risk.
Expert Opinions
LIC’s portfolio mirrors the broader direction of India’s economy and market sentiment. Market uncertainty and foreign institutional investor (FII) outflows have impacted public institutions. However, analysts believe that once market stability returns, LIC’s strategic rebalancing could lead to recovery and growth.
Summary:
LIC’s equity holdings lost ₹46,000 crore in July 2025 due to falling markets, with Reliance Industries emerging as the biggest drag on its portfolio.