LIC equity portfolio loses ₹66,000cr in July: Here's why
What's the story
India's largest insurer, the Life Insurance Corporation of India (LIC), suffered a loss of ₹66,000 crore in its equity portfolio in July. The massive decline came as a result of a major sell-off in bluechip stocks. Major companies such as Reliance Industries (RIL) and Tata Consultancy Services (TCS) witnessed significant declines, affecting LIC's holdings.
Market impact
LIC's equity portfolio value
At the end of June 2025, LIC's massive equity portfolio was worth ₹15.94 lakh crore. However, the value plummeted by 4.15% to ₹15.28 lakh crore in July due to the market carnage. Reliance Industries, LIC's largest holding, was the biggest drag on the portfolio with a massive ₹10,146 crore loss as its share price fell 7.35% in July. TCS contributed to the decline with a ₹7,457 crore reduction in LIC's stake value after a 12.24% drop in its stock price.
Sectoral impact
IT, banking, and financial services hits
The IT sector also contributed to LIC's losses with HCL Technologies and Infosys losing ₹3,751 crore and ₹3,744 crore, respectively. Tech Mahindra also took a hit with its value dropping by ₹2,253 crore. In the banking and financial space, IDBI Bank saw its value crumble by ₹5,707 crore while Axis Bank and Kotak Mahindra Bank suffered losses of ₹3,200 crore and ₹2,531 crore, respectively.
Broader impact
Smaller holdings also took a hit
The market downturn wasn't limited to major companies. Smaller holdings also witnessed sharp declines, with Indian Energy Exchange (IEX) witnessing a nearly 30% crash in LIC's holding value. Reliance Power saw a massive 24.72% fall in its share price while Bharat Dynamics (-16.73%), SBI Cards (-15.01%), and Mazagon Dock Shipbuilders (-14.54%) were other major losers in percentage terms across technology, finance, energy, and industrial stocks.
Positive returns
Few companies defy the trend
Despite the market downturn, a few companies managed to deliver positive returns. ICICI Bank was the top gainer, adding ₹1,324 crore to LIC's portfolio value. Patanjali Foods also contributed with its value increasing by ₹768 crore after a 14% stock price surge. Other notable gainers included HDFC Bank (up ₹615 crore), JSW Steel (up ₹422 crore), Maruti Suzuki (up ₹365 crore), and Ambuja Cements (up ₹250 crore).