The Indian stock market is undergoing a significant correction, which has had a substantial impact on the portfolio of the Life Insurance Corporation of India (LIC). According to reports, the market value of LIC’s holdings has declined by ₹84,247 crore in just the past one and a half months.
As of December 2024, LIC’s total holdings in listed companies were valued at ₹14.72 trillion, which has now fallen to ₹13.87 trillion as of February 18, 2025. This marks a 5.7% decline, reflecting the widespread market volatility. The study analysed 330 companies in which LIC held over a 1% stake during the October-December 2024 quarter. These companies collectively accounted for 66% of the total market capitalisation of all BSE-listed companies.
A large portion of LIC’s portfolio decline can be attributed to the steep correction in shares of ITC, Larsen & Toubro (L&T), and State Bank of India (SBI). These stocks have witnessed a fall of over 10% in CY25, leading to a combined loss of:
Together, these 3 stocks accounted for 29% of LIC’s total value erosion.
LIC has experienced market value erosion of ₹1,000 crore or more in 26 companies, with notable declines in:
Losses in these stocks range from ₹2,000 crore to ₹4,000 crore, highlighting the impact of the broader market correction.
The report also noted that non-banking financial companies (NBFCs) and insurance companies contributed significantly to the decline. These sectors were among the top value destroyers, leading to a combined portfolio erosion of ₹18,385 crore, making up 22% of the total loss.
Despite the overall downturn, some stocks in LIC’s portfolio managed to add value. Companies that saw an increase in LIC’s holding value by ₹1,000 crore to ₹3,000 crore included:
These stocks defied the broader market trend, offering some resilience to LIC’s portfolio amid the correction.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 20, 2025, 2:20 PM IST
Team Angel One
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