Rs 66,000 crore gone! LIC portfolio takes a hit in July as bluechip stocks crash

A brutal sell-off in some of India's most storied bluechip stocks ripped a staggering Rs 66,000 crore from the Life Insurance Corporation of India's (LIC) vast equity portfolio in July. The market carnage, which saw titans like Reliance Industries (RIL), TCS, Axis Bank and HCL Technologies suffer up to double-digit declines, dealt a significant blow to the nation's largest institutional investor, underscoring the fierce headwinds that rattled markets last month.

The value of LIC's mammoth portfolio, which stood at Rs 15.94 lakh crore at the end of June 2025, plummeted by 4.15% to Rs 15.28 lakh crore in July. This sharp erosion highlights the vulnerability of even the most seasoned investor to market volatility, as a sea of red ink washed over its holdings. The calculations are based on LIC's declared shareholding pattern for June, and the actual figures may have varied based on any trading activity by the insurer in July.



The heaviest anchor on LIC's portfolio was its collection of marquee bluechips. The top ten losers alone accounted for more than Rs 38,000 crore in value erosion, revealing concentrated pain at the top.

Reliance Industries, LIC's largest holding, was the biggest drag, wiping out a colossal Rs 10,146 crore from the portfolio as its share price fell 7.35% in the month, shows data collated from ACE Equity.

The IT sector was a major source of pain. Tata Consultancy Services (TCS) saw the value of LIC's stake shrink by Rs 7,457 crore following a 12.24% plunge in its stock. HCL Technologies and Infosys compounded the tech misery, losing Rs 3,751 crore and Rs 3,744 crore, respectively. Tech Mahindra also bled heavily, with its value dropping by Rs 2,253 crore.

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The banking and financial space was not spared. IDBI Bank, in which LIC holds a 49.24% stake, saw its value crumble by Rs 5,707 crore. Private sector lenders Axis Bank and Kotak Mahindra Bank also suffered significant losses of Rs 3,200 crore and Rs 2,531 crore, respectively.

Beyond the headline names, the damage was widespread, with several companies witnessing precipitous falls in their stock prices, leading to substantial mark-to-market losses for LIC.

The sharpest percentage declines were seen in smaller holdings, which nonetheless underscore the breadth of the market downturn. Indian Energy Exchange (IEX) was the worst performer, with the value of LIC's holding crashing by nearly 30%. Reliance Power saw a dramatic 24.72% fall in its share price.

Other significant losers in percentage terms included Bharat Dynamics (-16.73%), SBI Cards (-15.01%), and Mazagon Dock Shipbuilders (-14.54%). These figures illustrate a challenging month where weakness was not confined to a single sector but was felt across technology, finance, energy, and industrial stocks.

Silver linings in LIC portfolio

Amid the widespread gloom, a handful of companies managed to buck the trend and deliver positive returns, though they were not enough to offset the broader losses.

ICICI Bank was the standout gainer, adding Rs 1,324 crore to LIC's portfolio value. Patanjali Foods also provided a significant boost, with its value increasing by Rs 768 crore on the back of a 14% stock price surge. HDFC Bank contributed a gain of Rs 615 crore. Other notable gainers included JSW Steel (up Rs 422 crore), Maruti Suzuki (up Rs 365 crore), and Ambuja Cements (up Rs 250 crore).

These bright spots, however, were few and far between in a month dominated by selling pressure.

(Data: Ritesh Presswala)

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