Which stocks does LIC trust and which stocks does it avoid? Total Unaccounted Balance of ₹15.5 Lakh Crore Revealed, View Full List

Life Insurance Corporation of India (LIC) has reshuffled its large equity portfolio in the September quarter. It bought shares in Larsen & Toubro (L&T), Reliance Industries and Bharti Airtel, while reducing its holdings in ICICI Bank, State Bank of India and Nestlé India. According to Prime Database data, LIC’s equity holding as on September 30 stood at Rs. 15.49 lakh crore was. This is 4.97 percent lower than the previous quarter, when during the period LIC had a total of Rs. 7,346 crore worth of equity shares were purchased.

LIC’s holdings declined as its stake in companies listed on the National Stock Exchange (NSE) fell to 3.38 percent from 3.50 percent in the June quarter, an all-time low. Even if calculated on the basis of ‘free-float’ shares only, LIC’s share fell from 7.03 per cent to 6.80 per cent. Despite the decline in total share, LIC remains India’s largest asset manager. Its equity holdings are almost double that of the country’s largest mutual fund company, according to Prime Database.

These companies have increased their share

1. In the September quarter, LIC made its biggest buy in Larsen & Toubro (L&T), where it invested Rs. 4,153 crore shares were bought. LIC increased its holding by 1.06 crore shares even as the stock price declined by 9.25% during the quarter.
2. The second largest purchase was in Reliance Industries. LIC has paid Rs. 3,967 crore shares were bought, increasing its holding by 3.09 crore shares. Shares of Reliance declined by 8.26 percent during this period.
3. Apart from this, LICA has charged Bharti Airtel Rs. 3,878 crore worth of shares, increasing its holding by 2.04 crore shares. Shares of Airtel fell 5.13 percent in the quarter.
4. LIC’s other big purchases include Maruti Suzuki India, where it bought Rs. 2,968 crore shares were bought, while the stock price declined by 15.22 percent during the period.
5. He paid NTPC Rs. 2,926 crore and Power Grid Corporation of India Rs. 2,508 crore shares were bought, while these two stocks declined by 9.51 percent and 9.01 percent respectively.
6. LIC Eicher Motors Rs. 2,465 crore, Ultratech Cement Rs. 2,419 crore, Mahindra & Mahindra’s Rs. 2,365 crore and Power Finance Corporation Rs. 2,261 crore shares were also bought.

LIC’s estimated net purchase of these 10 companies is Rs. 29,910 crores. This is calculated by multiplying the change in shareholding during the quarter by the volume-weighted average closing price. This buying pattern shows that LIC has prioritized large companies related to infrastructure, energy, telecom, automobile and financial services. This also shows that while the share price declined during the quarter, LIC increased its holdings.

These companies reduced their share

1. LIC sold the most to ICICI Bank. It reduced its holding by 3.16 crore shares, which is around Rs. 4,453 crore equivalent to net sales. The stock fell nearly 4 percent during the quarter.
2. State Bank of India (SBI) had the second largest sale. LIC reduced its holding by 3.10 crore shares, worth around Rs. 3,209 crores. Shares of SBI fell by 6.56 percent.
3. This insurance company has paid Nestlé India Rs. 2,623 crore worth of shares were also sold, while the stock fell by 6.77 percent. He paid Divi’s Laboratories Rs. 2,095 crore shares were sold, though the stock rose 41.23 percent during the quarter.
4. LIC invests in Tech Mahindra Rs. 1,926 crore, Zydus Lifesciences at Rs. 1,889 crore, Hindustan Zinc at Rs. 1,826 crore, Coal India at Rs. 1,579 crore, Tata Motors Rs. 1,566 crore and in BSE Rs. 1,477 crore holding was reduced.

The estimated value of LIC’s top 10 sales was ₹22,643 crore. The changes in LIC’s portfolio were not limited to the biggest buys and sells. The insurer increased its stake in Zee Entertainment Enterprises by less than 1 percent to 3.56 percent and raised its stake in REC to 5.66 percent from 3.33 percent. It has also increased its stake in Power Finance Corp, Oil India, Tata Motors Passenger Vehicles, Britannia Industries, Cochin Shipyard, Eicher Motors and Bharat Petroleum.

The largest holding among these companies in terms of value

In terms of value, Reliance Industries remained LIC’s largest equity holding, valued at Rs. 1.12 lakh crores. This is followed by State Bank of India with Rs 71,999 crore and Larsen & Toubro (L&T) with Rs 67,605 crore. LIC’s other major holdings include ITC (Rs 54,174 crore), Bharti Airtel (Rs 48,953 crore), HDFC Bank (Rs 46,321 crore), Infosys (Rs 43,601 crore), IDBI Bank (Rs 43,518 crore), Tata Consultancy Services and I94 crore Bank (Rs 1,953 crore). is 37,035 crore). In terms of percentage share, LIC had the largest stake in IDBI Bank (49.24 per cent), followed by LIC Housing Finance (45.24 per cent) and ITC (16.45 per cent).

Priority to large companies

Therefore, LIC’s strategy in Q2 was a mix of buying and selling (portfolio sorting). It invested heavily in L&T, Reliance, Airtel, power companies and select auto companies, while reducing its holdings in major banks, consumer companies and several stocks that had performed well in the past. For investors eyeing India’s largest domestic asset manager, the latest revelations suggest that LIC is still opting for larger and established companies. Also, they are ready to buy when the market is weak, while some are withdrawing capital from other holdings and deploying it elsewhere.