LIC raises stakes in SBI, Sun Pharma, HCL; cuts exposure in HDFC, ICICI Bank, L&T

The September 2025 quarter proved challenging for Indian equities, as aggressive U.S. import tariffs and persistent foreign portfolio outflows weighed on investor sentiment amid global trade uncertainties. The benchmark indices — Sensex and Nifty — declined by around 4% each during the July–September period.

Despite adverse market conditions, Life Insurance Corporation of India (LIC) , the country’s largest state-owned insurer, turned net buyer in Indian equities, investing over ₹21,700 crore during the period even as foreign institutional investors (FIIs) pulled out nearly 1.3 lakh crore from the domestic cash market.

Overall, the market value of LIC’s listed equity portfolio dropped 1.7% sequentially to ₹16.09 lakh crore as of September 2025, down from ₹16.36 lakh crore in June, reflecting the overall weakness in equity markets. At the end of the quarter, LIC held stakes in 322 listed entities.

Top five stocks where LIC increased its stake

State Bank of India (SBI) topped the chart as the state-owned insurer purchased shares worth ₹5,999 crore, reinforcing its confidence in the country’s largest lender.

The insurer also raised its exposure to Sun Pharmaceutical Industries and HCL Technologies , buying shares worth ₹3,228 crore and ₹2,925 crore, respectively.

Among other major additions, LIC bought Polycab India shares valued at ₹2,871 crore and Coal India shares worth ₹2,781 crore, indicating its bullish stance on the manufacturing and energy sectors.

Top five stocks where LIC trimmed its holdings

On the other hand, LIC reduced its positions in major financials and large-cap names. The biggest reduction came in HDFC Bank , with shares worth ₹3,129 crore sold during the quarter.

This was followed by stake cuts in ICICI Bank (₹2,753 crore), Larsen & Toubro (₹2,345 crore), Bharti Airtel (₹2,195 crore), and Mahindra & Mahindra (₹1,990 crore).

Top five new additions to LIC’s portfolio

During the quarter under review, LIC expanded its investment universe by adding several fresh counters. The insurer’s largest new bet was Yes Bank , with an investment of ₹6,624 crore, followed by ABB India (₹4,538 crore) and Varun Beverages (₹3,913 crore).

Other notable additions included Shriram Finance (₹1,979 crore) and Persistent Systems (₹1,498 crore), signalling LIC’s growing interest in both financial and technology sectors.

Over the years, LIC’s equity exposure in India’s top 500 listed companies has grown nearly tenfold — from ₹1.56 lakh crore in 2014 to about ₹16 lakh crore at present. The insurer’s portfolio remains anchored in some of the country’s most valuable conglomerates, including Reliance Industries, ITC, Tata Group, and Adani Group companies.

As per the latest disclosures, LIC holds around 4% in Adani firms (valued at roughly ₹60,000 crore), compared with 6.94% in Reliance Industries (₹1.33 lakh crore), 15.86% in ITC (₹82,800 crore), 4.89% in HDFC Bank (₹64,725 crore), and 9.5% in State Bank of India (₹79,361 crore). It also owns 5.02% of Tata Consultancy Services (TCS), with that stake valued at approximately ₹5.7 lakh crore.

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