LIC's significant stock rearrangement worth 25,000 crores favors Reliance, TCS, and Defense sectors - Anticipating future moves?
In the second quarter of 2025, the Life Insurance Corporation of India (LIC) made notable changes to its equity portfolio. The corporation increased stakes in some stocks while trimming or exiting others, including significant movements in Reliance Industries Ltd, Tata Consultancy Services (TCS), and other companies.
Reliance Industries Ltd and Tata Consultancy Services (TCS)
LIC trimmed its holdings in Reliance Industries Ltd amid a challenging quarter where its equity portfolio fell by Rs 66,000 crore due to a sell-off in bluechip stocks. Reliance Industries was among the major stocks impacted, along with TCS.
TCS faced substantial valuation declines in Q2 2025, negatively affecting LIC’s portfolio. Exact stake changes in TCS are not detailed, but it was among the bluechip stocks with marked portfolio shrinkage.
Sector-specific Investments
Apart from Reliance and TCS, LIC increased exposure notably in sectors like defence, financial services, and technology. Some of the stocks where LIC raised its holdings include:
- Kothari Industrial Corporation: LIC’s stake increased dramatically by 393.29%, holding 1.51% by the end of the quarter.
- Tourism Finance Corporation of India: LIC’s portfolio share increased by 71.18%.
- RBL Bank: LIC’s holding increased by 61.7%, with the corporation holding 1.27% of the bank.
State Bank of India (SBI) and RBL Bank
LIC participated in State Bank of India’s (SBI) ₹25,000 crore QIP (Qualified Institutional Placement), increasing its stake from 9.21% to 9.49% by investing ₹5,000 crore.
Conversely, LIC trimmed holdings in several retail-favourite stocks such as Suzlon Energy, Reliance Power, and Vedanta, aligning with its portfolio realignment towards strategic sectors like defence.
Overall Equity Portfolio
LIC's overall equity portfolio stood at a valuation of Rs 15.5 lakh crore at the end of June 2025, comprising 277 listed equities with strategic shifts evident during the quarter. The corporation became a significant domestic equities investor, providing support to the Indian markets amid increased volatility.
In summary, while LIC reduced its holdings in Reliance Industries and trimmed positions in some retail stocks, it bolstered investments in certain financial sector stocks like SBI and banks such as RBL Bank, and increased stakes in select industrial and finance corporations. Details for precise stake changes in TCS are limited, but its valuation drop affected LIC’s portfolio during Q2 2025.
- The Life Insurance Corporation of India (LIC) reduced its holdings in Reliance Industries Ltd due to a challenging quarter where its equity portfolio fell, resulting from a sell-off in bluechip stocks.
- Tata Consultancy Services (TCS) faced substantial valuation declines in Q2 2025, which negatively affected LIC’s portfolio, though exact stake changes are not detailed.
- LIC increased exposure notably in sectors like defense, financial services, and technology, with some of the stocks where LIC raised its holdings being Kothari Industrial Corporation, Tourism Finance Corporation of India, and RBL Bank.
- LIC participated in State Bank of India’s (SBI) ₹25,000 crore QIP (Qualified Institutional Placement), increasing its stake from 9.21% to 9.49% by investing ₹5,000 crore.
- LIC's overall equity portfolio stands at a valuation of Rs 15.5 lakh crore, comprising 277 listed equities, making it a significant domestic equities investor, providing support to the Indian markets amid increased volatility.
