5 Large-Cap Stocks LIC Is Bullish On in Q4 FY25 – Reliance, Hero MotoCorp, L&T Among Top Picks
Introduction
LIC Is Bullish: India’s largest and most trusted life insurer, Life Insurance Corporation of India (LIC), has once again shown its influence in the Indian stock market. Established in 1956 after the nationalization of 245 private insurers, LIC isn’t just a household name in insurance — it’s also a massive institutional investor that holds stakes in some of India’s biggest companies. As of Q4 FY25, LIC increased its holdings in five major large-cap stocks, signaling confidence in their long-term growth stories.
These stake hikes provide strong cues for retail investors and market watchers. Here’s a closer look at the five large-cap companies LIC has bet more on this quarter: Reliance Industries, Hero MotoCorp, Larsen & Toubro (L&T), Asian Paints, and State Bank of India (SBI).
1. Hero MotoCorp – Accelerating with Renewed Confidence
Hero MotoCorp, the world’s largest two-wheeler manufacturer, has been a consistent performer in India’s commuter motorcycle market. Known for models like Splendor, HF Deluxe, and Passion, the company continues to innovate in both petrol and electric two-wheelers.
- LIC increased its stake from 5.53% to 5.92% in Q4 FY25, a jump of 0.39%.
- This move suggests renewed confidence in the company’s growth trajectory, especially with EV adoption gaining momentum.
2. Reliance Industries – A Diversified Titan with LIC’s Trust
Reliance Industries Ltd. (RIL), led by Mukesh Ambani, is India’s largest private-sector conglomerate. With successful ventures across telecom (Jio), retail (Reliance Retail), energy, and green tech, Reliance continues to drive transformation in India’s corporate landscape.
- LIC raised its stake from 6.52% to 6.74%, an increase of 0.22%.
- With strong fundamentals and diversification, Reliance remains a reliable long-term bet for institutional investors like LIC.
3. Larsen & Toubro (L&T) – Building India’s Future
L&T, one of India’s most respected engineering and infrastructure giants, operates in sectors such as construction, IT services, defense, and power projects.
- LIC upped its holding from 12.61% to 13.25%, a substantial rise of 0.64%.
- With the Indian government emphasizing infrastructure spending, L&T is well-positioned to benefit from future projects.
4. Asian Paints – Coloring LIC’s Portfolio Bright
Founded in 1942, Asian Paints leads India’s paint industry and is a dominant force in decorative coatings. With premium and budget products alike, its wide market presence makes it a stable pick in uncertain times.
- LIC significantly raised its stake from 7.15% to 8.29%, the largest increase on this list at 1.14%.
- This suggests that LIC sees value in the growing home improvement and real estate-linked demand for paints.
5. State Bank of India (SBI) – Banking on India’s Financial Backbone
SBI is India’s largest public-sector bank and a key player in every financial sphere — from retail and corporate banking to insurance and mutual funds. As India’s economy expands, SBI stands to gain from both urban and rural growth.
- LIC increased its stake from 9.13% to 9.38%, up by 0.25%.
- As a government-backed bank, SBI offers both stability and scale, making it a favorite among institutional investors.
📊 Financial Snapshot of the 5 Large-Cap Stocks
| Company | LIC Holding Q3 FY25 | LIC Holding Q4 FY25 | Stake Increase (%) | Market Cap (₹ Cr) |
|---|---|---|---|---|
| Hero MotoCorp | 5.53% | 5.92% | +0.39% | ₹77,090 |
| Reliance Industries | 6.52% | 6.74% | +0.22% | ₹18,64,436 |
| Larsen & Toubro | 12.61% | 13.25% | +0.64% | ₹4,73,849 |
| Asian Paints | 7.15% | 8.29% | +1.14% | ₹2,20,903 |
| SBI | 9.13% | 9.38% | +0.25% | ₹6,95,584 |
Why LIC’s Moves Matter
LIC’s stake changes aren’t just routine portfolio adjustments — they often reflect broader economic and sectoral trends. Given LIC’s research capabilities and long-term outlook, a stake increase can indicate strong future potential for a stock. For retail investors, tracking these movements can provide valuable investment insights.
Q&A Section: Quick Insights for Readers
Q1: Why does LIC’s investment activity matter to retail investors?
A: LIC is a major institutional investor with deep research capabilities. When it increases stakes in certain companies, it signals high conviction and long-term belief in those stocks’ growth.
Q2: Which stock did LIC increase its stake in the most during Q4 FY25?
A: LIC raised its stake in Asian Paints the most, with a 1.14% increase.
Q3: What sectors do these five large-cap companies represent?
A: They span across automobiles (Hero MotoCorp), conglomerate (Reliance), engineering & infrastructure (L&T), consumer goods (Asian Paints), and banking (SBI).
Q4: Is Reliance still a good investment in FY25?
A: LIC’s increased stake in Reliance reflects strong belief in its diversified business model and growth in telecom, retail, and green energy.
Q5: How can I use this information for my portfolio?
A: Watching where major institutions like LIC invest can help identify strong companies with long-term potential. These five stocks are worth monitoring for future investment.
Conclusion
LIC’s latest stake increases are a strong signal of its confidence in these five large-cap giants. For investors seeking stable and fundamentally strong companies, these stocks represent a solid starting point. As the Indian economy continues to grow, LIC’s picks could turn out to be wise long-term bets — and for retail investors, that’s a signal worth paying attention to.
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