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%.”