LIC's ₹15L crore portfolio reshuffle: Which stocks did it buy?
What's the story
The Life Insurance Corporation of India (LIC), the largest domestic institutional investor in the country with a massive ₹15.5 lakh crore equity portfolio, has made some major changes to its holdings. The insurance giant has cut stakes in 81 companies during the June quarter and added four public sector unit (PSU) defense stocks. The move comes as part of LIC's strategy to diversify its investment portfolio amid changing market dynamics.
Portfolio adjustments
LIC trims stakes in popular retail stocks
LIC has trimmed its stakes in some of the most popular retail stocks, including Suzlon Energy, Reliance Power, and Vedanta. These companies have been favorites among small investors despite their volatile performance. The insurer's current portfolio now consists of 277 stocks, according to data from ACE Equity.
Strategic shift
Strong focus on defense sector in PSU insurer's portfolio
LIC's latest additions to its portfolio indicate a strong focus on the defense sector. The PSU insurer has taken fresh stakes in Mazagon Dock Shipbuilders (3.27% holding worth ₹3,857 crore) and increased its holdings in established defense companies. The insurer has raised its stake in Cochin Shipyard by 13 basis points to 3.05%, Bharat Electronics by 10 basis points to 1.99%, and Hindustan Aeronautics Limited (HAL) by five basis points to 2.77%.
Sectoral expansion
Moves in tech and financial services indicate long-term vision
Apart from defense, LIC has also increased its exposure to technology and financial services. The insurer raised its stake in Infosys by 43 basis points to 10.88% (now worth ₹63,400 crore), and added 48 basis points to HCL Technologies, taking its holding to 5.31% valued at ₹21,900 crore. In a bold move, LIC increased its Jio Financial Services position by 55 basis points to 6.68%, showing confidence in Mukesh Ambani's financial services venture.
Banking shifts
Banking portfolio sees selective repositioning
LIC's banking portfolio has also seen selective repositioning. The insurer has reduced heavyweight positions while backing select PSU banks. HDFC Bank saw a 30 basis point reduction to 5.45%, while ICICI Bank was trimmed by 42 basis points to 6.38%. However, Bank of Baroda benefited from a 61 basis point increase to 7.51%, while Canara Bank received a boost of 13 basis points to its stake.
Investment strategy
RIL continues to be LIC's largest holding
Reliance Industries (RIL) remains LIC's largest holding at ₹1.3 lakh crore (6.93% stake), which saw a 19 basis point increase. ITC remained the second-largest holding at ₹82,200 crore (15.8% stake) with a 28 basis point increase. The top 10 holdings account for over ₹6 lakh crore of LIC's portfolio, with HDFC Bank (₹68,600 crore), State Bank of India (₹66,300 crore), and Larsen & Toubro (L&T) (₹64,100 crore) completing the largest positions.