Mumbai, July 28, 2025 — India’s largest insurer and domestic institutional investor, Life Insurance Corporation of India (LIC), has suffered a staggering ₹46,000 crore decline in the value of its equity portfolio this July due to a sharp market downturn.
📉 Portfolio Value Takes a Hit
- As of June 30, 2025, LIC’s holdings in 322 listed companies were valued at ₹16.10 lakh crore
- By July 25, that figure had dropped to ₹15.64 lakh crore
- Despite the setback, LIC’s portfolio remains ₹1.94 lakh crore higher than its April 2025 low, when markets hit a 52-week bottom
🏢 Major Contributors to the Loss
The biggest blow came from Reliance Industries, whose 7.2% stock decline wiped out ₹10,180 crore from LIC’s portfolio. The IT sector also proved costly:
- TCS, Infosys, HCL Tech, Tech Mahindra: Combined loss of ₹15,321 crore
- L&T: ₹4,212 crore loss
- Bharti Airtel: ₹1,764 crore loss
- ITC: ₹1,362 crore loss
💡 Bright Spots in the Portfolio
Some stocks offered LIC a cushion:
- Hindustan Unilever: ₹1,821 crore gain
- ICICI Bank: ₹1,507 crore gain
- SBI: ₹1,133 crore gain
- Mahindra & Mahindra, Ambuja Cements, Patanjali Foods, ITC Hotels, UPL: Combined gain of ₹760 crore
🌍 Market Sentiment and Global Factors
According to U.R. Bhatt, co-founder of Alphaniti Fintech:
- Foreign Institutional Investors (FIIs) sold ₹20,263 crore worth of Indian equities in July
- Domestic Institutional Investors (DIIs) injected ₹39,826 crore, offering partial relief
- Concerns over the Jane Street case and upcoming U.S. tariffs (effective August 1) have rattled investor confidence
- The India-U.S. trade deal delay is adding to market anxiety
📊 Outlook: Volatility Ahead, But Hope Remains
G. Chokkalingam, founder of Equinomics Research, believes:
“India’s dependence on U.S. markets — especially for IT services and pharma exports — means any negative surprise could impact sentiment. But if earnings are strong and interest rates remain stable, Nifty 50 could still rise 5–7%.”