New Delhi: Amid recent declines in IT stocks, India’s largest institutional investor, Life Insurance Corporation of India (LIC), has made significant purchases in the sector while simultaneously selling off banking shares.
LIC’s Portfolio and IT Investments
LIC’s portfolio comprises 283 stocks with a total value of ₹17.83 lakh crore. According to Prime Database, during the December quarter, LIC made its largest purchase in TCS, acquiring shares worth ₹3,136 crore. It also invested ₹2,293 crore in HCL Technologies and added Coforge to its holdings.
These purchases raised LIC’s IT sector holdings from ₹1.82 lakh crore to ₹2.17 lakh crore, increasing the IT sector’s share in the portfolio from 11.32% to 12.43%, even though IT stocks have dropped about 30% from their peak. Recent developments, including a new AI tool by Anthropic, have stirred volatility in the IT sector.
Banking Stocks See Aggressive Sell-Off
While buying tech shares, LIC aggressively reduced holdings in financial services. In the December quarter, it sold:
- SBI: ₹3,080 crore
- HDFC Bank: ₹1,528 crore
- Bank of Baroda: ₹1,173 crore
The financial services sector’s share in LIC’s portfolio fell from 27.21% to 26.52%, still the largest allocation at ₹4.64 lakh crore.
LIC also sold shares in key companies such as:
- Larsen & Toubro: ₹2,442 crore
- Reliance Industries: ₹2,367 crore
- Hindalco: ₹2,307 crore
- Vedanta: ₹1,491 crore
Aggressive Bets on Coforge and Other Stocks
LIC made its most aggressive purchase in Coforge, raising its stake from under 1% in September to 4.66% by December. Coforge has fallen nearly 30% from its 52-week high. LIC also increased stakes in NDMC, Voltas, Dr. Reddy’s Laboratories, Astral, Indian Overseas Bank, Exide Industries, and JSW Energy.
Other Portfolio Adjustments
- Adani Ports: stake reduced from 7.73% to 6.79%
- Hindalco: 6.18% → 4.92%
- Vedanta: 5.7% → 4.97%
- Bank of Baroda: 6.64% → 5.84%
In addition, LIC purchased ₹2,942 crore in Sun Pharma and made significant buys in NDMC, Bajaj Auto, and Coal India, while selling ₹1,147 crore worth of Maruti Suzuki shares.
LIC’s moves reflect a strategic shift toward IT stocks amid sector volatility while reducing exposure in banking and other financial services to rebalance its portfolio in response to market trends.
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