LIC portfolio sees Rs 46,000 crore dent in July; RIL biggest value drag

Life Insurance Corporation of India (LIC), India’s largest domestic institutional investor, has seen ₹46,000 crore erosion in the value of its equity holdings after a fall in the equity markets thus far in July. The benchmark indices, Nifty 50 and BSE Sensex have slipped 2.6 per cent from their June 2025-end level to 24,837 and 81,463.09 levels, respectively.

 

From ₹16.10 trillion as on June 30, 2025, the value of LIC’s 322-stock has declined to ₹15.64 trillion as on July 25, 2025, marking ₹46,000 crore mark-to-market loss. However, LIC’s portfolio value is still higher by ₹1.94 trillion from April 7, 2025 level when the benchmark indices had hit their respective 52-week lows.

 

The notional loss calculation compares changes in value between the June 30, 2025 and July 25, 2025 period. The value calculated on LIC’s holding, in which the insurance firm has over 1 per cent stake per shareholding pattern data as on June 30, 2025. 

 

The markets, according to G Chokkalingam, founder and head of research at Equinomics Research, are worried about the delay in signing the trade deal with the US. That apart, foreign institutional investors (FIIs) are also keeping an eye on earnings of India Inc. and the overall market valuation.

 

“Our reliance on the US – both in IT services and pharma goods exports is sizable. Any surprises on this front can spoil the party for these sectors and the market sentiment. There is no doubt that the overall market valuation is stretched, but there is still scope for 5 – 7 per cent upside in the Nifty 50 if the earnings come through and the interest rates remain soft,” Chokkalingam said. 

 

Reliance Industries: Biggest value drag

 

Meanwhile, four IT companies combined – TCS, Infosys, HCL Technologies and Tech Mahindra – have made a dent of ₹15,321 crore in LIC’s portfolio thus far in July.

 

LIC’s top equity holding in terms of value, Reliance Industries, has been one of the biggest value drags on its portfolio, with the stock’s 7.2 per cent decline that eroded ₹10,180 crore in value for the public sector insurer. 

 

  Larsen & Toubro (L&T) that saw 6 per cent decline in its market price in July, eroded ₹4,212 crore in overall LIC’s stock portfolio. Bharti Airtel (₹1,764 crore), and fast moving consumer goods (FMCG) company ITC contributed ₹ 1,362 crore in overall net worth erosion for LIC.

 

On the other hand, Hindustan Unilever (₹1,821 crore), ICICI Bank (Rs 1,507 crore) and State Bank of India (₹1,133 crore) shored up LIC’s portfolio value by ₹4,462 crore during this period. Mahindra & Mahindra, Ambuja Cements, Patanjali Foods, ITC Hotels and UPL have added nearly ₹760 crore to LIC’s stock portfolio.

 

A worried lot

 

FIIs, according to UR Bhat, co-founder & director, Alphaniti Fintech, have been a worried lot off late as regards Indian markets on account of the regulatory overhang post the Jane Street development.

 

In July 2025, they sold ₹20,263 crore worth of Indian equities via stock exchange route. DIIs, on the other hand, have put in Rs 39,826 crore during this period and provided some stability to the markets. 

 

“The markets can dip another 2 – 3 per cent from here in the run up to August 1 (US tariffs take effect). The US, according to reports, is not too happy with the India – UK trade agreement, and the markets, too, are worried about the absence of a trade deal with the US at this stage. For investors, it’s a wait-and-watch period till clarity emerges,” Bhat said.