LIC Bets Big on IT Amid Sector Slump – Here’s Why It’s Making Headlines
The market is abuzz about the Life Insurance Corporation (LIC) after the company went against prevailing trends, even as AI fears rattled IT stocks. The insurer launched a major acquisition drive, buying Tata Consultancy Services (TCS) shares worth Rs 3,136 crore, HCL Technologies shares worth Rs 2,293 crore, and establishing a new investment position in Coforge.
Why the spotlight? LIC’s contrarian strategy stands out in a sea of cautious investors. While others were offloading tech shares, LIC increased its exposure, betting on a recovery in IT stocks. Market watchers are analyzing whether this move signals a strategic long-term investment plan or is simply another twist in India’s stock market saga. The episode underscores how major financial institutions navigate business decisions even amid turbulent market conditions.
LIC’s Selective Bets Beyond Technology: Strategy or Show?
LIC is expanding its business operations beyond its current focus on IT sector recovery efforts. The insurance company invested Rs 2,942 crore into Sun Pharmaceutical Industries, which became its second-largest acquisition after TCS. The inclusion of NMDC, Bajaj Auto, and Coal India demonstrates strong interest in public sector undertakings and domestic demand-driven businesses, showing that LIC plans to invest for the long term. The insurer sold portions of its ownership in Adani Ports & SEZ and Maruti Suzuki, demonstrating its selective purchasing approach. LIC increased its stake in 73 companies listed on the NSE while reducing its stake in 90 companies, and the average share price of companies where LIC increased its ownership showed only 0.14% movement. LIC builds its stock collection through share purchases, which will benefit the company over the long term, while other market participants focus on immediate trends.
LIC’s IT Allocation Surges Despite Market Weakness
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LIC’s technology holdings increased from Rs 1.82 lakh crore to Rs 2.17 lakh crore.
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IT’s share in LIC’s overall portfolio rose from 11.32% to 12.43%.
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The increase came even as several IT stocks fell sharply, with some dropping up to 30% from recent peaks.
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Coforge saw the most notable move: LIC’s stake jumped from under 1% in September to 4.66% by December.
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The midcap IT firm, Coforge, was among the worst-hit in the recent selloff.
LIC Reduces Exposure in Financials, Industrials, and Metals
| Sector | Company / Holdings | Action Taken / Notes | Portfolio Share Impact |
|---|---|---|---|
| Financials | State Bank of India (SBI) | Sold shares worth Rs 3,080 crore | Reduced from 27.21% to 26.52% |
| Financials | HDFC Bank | Trimmed stake | – |
| Financials | Bank of Baroda | Trimmed stake | – |
| Industrials | Larsen & Toubro (L&T) | Reduced holdings | – |
| Industrials | Reliance Industries | Reduced holdings | – |
| Metals | Hindalco Industries | Reduced holdings | – |
| Metals | Vedanta | Reduced holdings | – |
| Metals | Steel Authority of India | Reduced holdings | – |
(With Inputs)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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