The Life Insurance Corporation of India (LIC), the largest institutional investor in Indian stock markets, increased its stake in 75 out of 285 holdings during the September 2024 quarter, while introducing seven new stocks to its portfolio. The insurer’s strategic moves align with the ongoing bullish trend in the market.
LIC’s gross purchases for the quarter amounted to an estimated Rs 56,000 crore, based on average prices, with nearly 50% of this directed toward large-cap stocks. The insurer’s total selling value stood at over Rs 38,000 crore, leading to a net investment of Rs 18,000 crore.
During this period, LIC reduced its holdings in 84 stocks, exited seven entirely, and left its stake unchanged in 111 companies. The total value of LIC’s portfolio rose to Rs 16.76 lakh crore, up from Rs 15.72 lakh crore in the previous quarter, as per Prime Database.
The quarter’s activity coincided with significant inflows from both foreign and domestic institutional investors. Foreign institutional investors (FIIs) invested Rs 88,459 crore, while domestic institutional investors (DIIs) added Rs 1.04 lakh crore, reflecting a strong market sentiment. The Sensex and Nifty gained 7% each during the quarter, with the BSE midcap and smallcap indices rising by 7% and 9.6%, respectively.
LIC made substantial investments in blue-chip companies, including: Larsen & Toubro (Rs 3,439 crore), Maruti Suzuki India (Rs 2,857 crore), Bajaj Finance (Rs 2,659 crore), IndusInd Bank (Rs 2,396 crore), Mahindra & Mahindra: (Rs 1,839 crore), State Bank of India (Rs 1,824 crore).
Other key investments included Reliance Industries, Bajaj Finserv, Kotak Mahindra Bank, and ICICI Bank, with purchases ranging from Rs 1,351 crore to Rs 1,686 crore.
On the divestment side, LIC’s largest sales included: Lupin (Rs 2,230 crore), NTPC (Rs 2,129 crore), HDFC Asset Management (Rs 2,105 crore). Additional sales targeted Hero MotoCorp, Tata Consultancy Services, GAIL India, and Tata Power, among others.
LIC added seven new stocks to its portfolio, with investments worth approximately Rs 8,560 crore. These include: Cyient Ltd, Shyam Metalics & Energy Ltd, Sanofi Consumer Healthcare India, Shriram Finance, IDFC First Bank, Bank of Maharashtra, and Bharat Electronics.
Meanwhile, the insurer exited eight stocks, including Procter & Gamble Hygiene & Healthcare, Deepak Fertilisers, City Union Bank, and GMR Airports, with total divestments valued at Rs 3,777 crore.
LIC’s increased investments reflect confidence in India’s economic prospects amid a strong market rally. The portfolio adjustments suggest a focus on large-cap and blue-chip companies, while the inclusion of new stocks signals ongoing efforts to diversify holdings and capture emerging growth opportunities.
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