New Delhi | August 5, 2025 – India’s largest institutional investor, Life Insurance Corporation of India (LIC), faced a massive setback in July 2025, recording a staggering loss of ₹66,000 crore from its equity portfolio—primarily due to the underperformance of several top-tier blue-chip companies.
Notably, some of India’s most valuable and trusted firms—Reliance Industries (Mukesh Ambani), TCS (Tata Group), Axis Bank, HCL Technologies, Infosys, Kotak Mahindra Bank, and IDBI Bank—were among the major contributors to this decline.
However, amid the market turbulence, Patanjali Foods, one of India’s leading FMCG companies, turned out to be a silver lining for LIC, delivering strong positive returns at a time when most others faltered.
📉 Losses from Giants, Gains from Patanjali
While LIC’s portfolio took a hit from blue-chip underperformance, Patanjali Foods delivered a robust 14% return in July, according to stock market data. In monetary terms, LIC’s investment in Patanjali grew by ₹768 crore during the month—helping offset losses from larger holdings.
Alongside Patanjali, ICICI Bank and HDFC Bank also offered modest positive returns, as did JSW Steel, Maruti Suzuki, and Ambuja Cements.
📊 Patanjali’s Share Performance in July
Patanjali Foods saw a significant rise in its stock price in July. On the last trading day of June, the share price stood at ₹1,650.35, which rose to ₹1,882.40 by July 31—a sharp gain of ₹232.05 per share.
This upward trend pushed the company’s market capitalization from ₹59,826.23 crore on June 30 to ₹68,238.19 crore by July 31—an increase of over ₹8,411 crore in just one month.
📉 Early August Shows Slight Decline
Despite July’s rally, the beginning of August has been less favorable for Patanjali’s stock. On August 5, as of 12:20 PM, the stock was trading at ₹1,844.05, down about 1%. It even touched an intraday low of ₹1,839.65. The share had opened lower at ₹1,854.05, compared to ₹1,862.60 on the previous trading session (Monday), indicating a 2.27% dip so far in August.
📌 Market Sentiment and Portfolio Strategy
While July brought setbacks for LIC due to poor performance from traditionally strong blue-chip firms, its diversified portfolio strategy helped cushion the blow with gains from select stocks like Patanjali Foods.
The situation highlights the volatile nature of India’s equity markets, where even major institutional investors like LIC are exposed to sharp swings. However, the unexpected rise of mid-cap FMCG players such as Patanjali demonstrates the importance of maintaining a balanced investment approach.
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