LIC Rotates ₹17.5 Lakh Crore Equity Book Toward IT, Reduces Banking Weights

Life Insurance Corporation of India’s ₹17.5 lakh crore equity portfolio has taken a contrarian turn: heavy accumulation in information-technology names while trimming exposure to banks and a few industrial blue-chips. The shift visible in December-quarter filings and market-tracking data comes as IT stocks lagged the 2025 price action but showed signs of stabilising, and as banking counters enjoyed recent inflows. What explains LIC’s reweighting, and how large are the moves?

Why Is Life Insurance Corporation of India Increasing Its IT Exposure?

LIC’s portfolio change appears driven by valuation opportunities and a defensive long-term stance. Data compiled from shareholder filings and Prime Database show the insurer increased IT-sector holdings from about ₹1.82 lakh crore to roughly ₹2.17 lakh crore, lifting the IT share of the total folio to the low-teens percentage range of the ₹17.5 lakh-crore book. The insurer bought significant parcels of large-cap IT names during the quarter, reportedly acquiring TCS shares valued at around ₹3,136 crore and investing roughly ₹2,293 crore into HCLTech. Market commentators suggest the purchases target companies whose near-term multiples are compressed amid AI-related uncertainty but whose earnings and cash-flow profiles remain intact.

Which Stocks Did LIC Buy And Sell, And By How Much?

Reported additions include Tata Consultancy Services, Infosys, HCLTech, Wipro and select mid-cap IT names; the insurer also added positions in Coforge as part of the quarter’s activity. On the reduction side, LIC trimmed holdings in some large banking stocks and a handful of industrial heavyweights flagged in market reports include State Bank of India and ICICI Bank, and reductions in exposure to companies such as Larsen & Toubro and Reliance Industries were reported in exchange summaries. Exact quantum varies by stock and is disclosed in company-wise shareholding statements, but overall, the reallocation is sizable.

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What Might The Reweighting Mean For Markets And LIC’s Returns?

For the market, LIC’s buying provides demand into beaten-down IT names and may support price discovery if the insurer continues routine accumulation. For LIC itself, the move signals a belief that earnings stability and margin resilience in IT, aided by steady outsourcing and selective discretionary spend recovery abroad, outweigh near-term headline risk around AI disruption.

LIC’s broader financials give it scope to take longer horizons: the company reported rising profits and stronger premium flows in recent quarters, which underpin active portfolio management and make tactical reweights feasible. That said, banks remain core holdings for many institutional portfolios; continued outflows from that sector by large investors could accentuate volatility if sustained.

Sources:

Pressroom