Life Insurance Corporation of India (LIC), India’s largest domestic institutional investor, has seen the value of its portfolio rise nearly ₹1.8 trillion as the market staged a recovery from its April 2025 lows.
From ₹13.65 trillion as on April 7, 2025 when the markets hit their recent low, the value of LIC’s well-diversified 206-stock portfolio has risen to ₹15.43 trillion as on May 16, 2025, marking ₹1.78 trillion crore mark-to-market gain. The public sector insurer’s stake in 203 companies was valued at Rs 16.63 trillion as on September 30, 2024, data shows.
The benchmark indices, Nifty 50 and BSE Sensex, meanwhile, have rallied 13 per cent from their low touched on April 7, 2025.
The gain calculation in LIC’s portfolio compares changes in value between April 7, 2025 and May 16, 2025 in NSE 500 stocks where LIC holds over 1 per cent stake as per shareholding pattern data on March 31, 2025.
RIL, ITC among key gainers
LIC’s top equity holding in terms of value, Reliance Industries (RIL), has been one of the biggest contributors in its portfolio, with the stock’s 25 per cent surge adding ₹26,515 crore in value.
ITC, in which LIC held the highest holding in terms of percentage terms, has seen ₹5,759 crore value addition. LIC held 15.52 per cent stake in the fast moving consumer goods (FMCG) company at the end of the March 2025 quarter.
A significant part of the appreciation came from over 25 per cent rally in the share prices of Mahindra & Mahindra (₹5,801 crore), Adani Ports and Economic Zone (₹5,192 crore), Tech Mahindra (₹3,267 crore), Jio Financial Services (₹2,472 crore), Hindustan Aeronautics (₹2,036 crore), Tata Motors (₹1,750 crore) and Bharat Electronics (₹1,268 crore). These stocks have accounted for 12 per cent of LIC’s total value appreciation.
Investor’s focus on large-cap stocks in the last few weeks, according to G Chokkalingam, founder and head of research at Equinomics Research, was driven by the need for safety amid turbulent times. This, he believes, could change soon.
“In the medium-term, beyond one or two quarters, there is a possibility of the large-cap segment coming under pressure. With substantial moderation in trade war between the US and China and geopolitical tensions abating, investors may choose to allocate more to the small-and midcap segments as risk-on sentiment gathers steam,” he said.
Meanwhile, top 10 public sector undertakings (PSUs) contributed ₹14,989 crore in this portfolio value surge. Defence sector stocks Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics and Cochin Shipyard have seen their market value appreciate in the range of 28 per cent to 52 per cent between April 7 and May 16, data shows.
Upside triggers
At a broader level, the rebound in the Indian equity markets has been led by positive signals from the US regarding a potential trade agreement with India amid de-escalation of geopolitical conflict between India and Pakistan. This brought back foreign institutional investors (FII) flows back to Indian shores.
FIIs who were sellers in the first three months of 2025 having sold equity for Rs 1.16 trillion during this period turned buyers in April with a buy figure of Rs 4,243 crore. This change in FII strategy from selling to buying accelerated in May with a big buying of Rs 27,451 crore through 16th May.
“At 23x one-year forward earnings, Nifty is not cheap. Earnings growth has disappointed, and the economy is seeing a cyclical slowdown. Given that the economy has a chance of accelerating and we might enter an earnings upgrade cycle next year, investment in equities merits caution,” said R Venkataraman, managing director at IIFL Capital.
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