LIC Update: LIC has lost Rs 1.45 lakh crore, have you also invested money?

The country's largest insurance company LIC not only works to secure the future of the people, but it is also the country's largest institutional investor. The money of crores of people of the country, which is deposited in the form of premiums, is also invested by the insurance company in the stock market. You will be surprised to know that due to this fall in the stock market, LIC has lost Rs 1.45 lakh crore during this period.

Due to this loss in just two months, the portfolio of LIC, which was Rs 14.9 lakh crore in December 2024, came down to Rs 13.4 lakh crore on the last day of February. Now you can understand how much loss LIC has suffered in two months. If stock market experts are to be believed, this is the biggest loss suffered by LIC in recent times. Let us also try to explain to you in the language of figures that after all, due to which shares a company like LIC has suffered this loss.

These companies caused huge losses.

According to data from ACE Equity, ITC has caused the biggest loss to LIC. In which LIC has the second largest stake. ITC shares fell by 18 percent in two months, due to which the LIC portfolio suffered a loss of about Rs 17,000 crore. Tech giants TCS and Infosys, in which LIC has a stake of 4.75 percent and 10.58 percent respectively, have also declined, due to which the portfolio has seen a decline of Rs 10,509 crore and Rs 7,640 crore respectively.

Talking about banking and financial stocks, LIC has significant stakes in SBI (9.13 percent stake) and ICICI Bank (7.14 percent stake). Due to this, the portfolio has suffered a loss of Rs 8,568 crore and Rs 3,179 crore respectively. Jio Financial Services was one of the worst-hit stocks, falling 30.5 per cent and LIC has lost Rs 3,546 crore on this stock. Other major losers include L&T, HCL Tech and M&M, Jio Financial, Adani Ports and JSW Energy. Most of these stocks have suffered double-digit losses this year.

LIC's investments in these companies

LIC has stakes spread across more than 310 companies in which LIC has at least one per cent stake. There are at least 35 such stocks in which LIC has lost at least Rs 1,000 crore this year. LIC's biggest holdings by value are Reliance Industries (Rs 1,03,727 crore), ITC (Rs 75,780 crore), Infosys (Rs 67,055 crore), HDFC Bank (Rs 62,814 crore), TCS (Rs 59,857 crore), SBI (Rs 55,597 crore) and L&T (Rs 54,215 crore). On the other hand, there have been some stocks in LIC's portfolio that have benefited LIC. These include Bajaj Finance, Kotak Mahindra Bank, Maruti Suzuki, Bajaj Finserv, and SBI Cards.

Will LIC's portfolio improve?

With volatility in the market and no signs of abatement in selling pressure, concerns of further decline in LIC's holdings have increased. The insurance giant is historically known to withstand market volatility, but with the Nifty and Sensex under pressure amid continued selling by FIIs and a pullback in SME stocks, the pain is not over yet.

Most analysts say the Nifty has corrected 16 per cent from its peak, which has also pushed its TMM PE multiple below sub-20 levels for the first time in the last 32 months, leading to a drop in valuations as well. However, unless FIIs change their minds, the market is unlikely to recover. In the last 5 months, FIIs have sold over Rs 3 lakh crore worth of Indian stocks in the equity cash segment.

Kotak Institutional Equities said in a media report that it expects the Nifty to remain largely range-bound this year, while Citi Research recently forecast a recovery to 26,000 by December 2025, up 13 per cent from current levels. Morgan Stanley expects India to resume its outperformance versus emerging markets, backed by macro stability and rising consumption.

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