LIC Slashes Stake in Nearly 100 Stocks in Q3; Tata Power, HPCL Among Top 10 Sells
LIC Slashes : In a strategic move to book profits amid high valuations and slowing earnings growth, Life Insurance Corporation of India (LIC), the country’s largest life insurer and a major domestic institutional investor, reduced its stake in 98 stocks during the third quarter of the financial year 2024-25. According to data from Prime Infobase, this led to LIC’s share in companies listed on the NSE dropping to an all-time low of 3.51%, down from the previous quarter.
The value of LIC’s portfolio also declined to ₹15.28 lakh crore in Q3 from ₹16.75 lakh crore in the September quarter, reflecting a significant drop of 8.80%. This strategic sell-off occurred amid market volatility, influenced by global economic uncertainties and high valuations. However, LIC continued its investment momentum by increasing stakes in 71 stocks, showcasing a balanced approach to portfolio management.
Key Stocks Sold by LIC in Q3
LIC offloaded shares in prominent companies, including several from the Tata Group like Tata Power, Tata Chemicals, and Voltas. The insurer also significantly reduced its holdings in Hindustan Petroleum Corporation Ltd. (HPCL), bringing it below the 1% mark. The move is seen as a profit-booking strategy amid high valuations in these sectors.
Here’s a closer look at some of the major stocks where LIC reduced its stake:
| Company | Holding as of Sept Quarter (%) | Holding as of Dec Quarter (%) | Decrease in Holding (%) |
|---|---|---|---|
| Paradeep Phosphates Ltd. | 4.15 | 2.25 | -1.90 |
| Tata Power Co. Ltd. | 4.67 | 3.13 | -1.54 |
| Voltas Ltd. | 3.16 | 2.03 | -1.13 |
| Tata Chemicals Ltd. | 8.21 | 7.25 | -0.96 |
| India Cements Ltd. | 3.60 | 2.64 | -0.96 |
| Divi’s Laboratories Ltd. | 6.95 | 6.03 | -0.92 |
| Strides Pharma Science Ltd. | 1.91 | Less than 1% | N.A. |
| Computer Age Management Services Ltd. | 3.95 | 3.05 | -0.90 |
| Coforge Ltd. | 6.19 | 5.31 | -0.88 |
| Hindustan Petroleum Corp. Ltd. | 1.82 | Less than 1% | N.A. |
Among the top sells, LIC reduced its stake in Tata Power by 154 basis points (bps), bringing its shareholding to 3.13% from 4.67%. Similarly, in Voltas, the holding decreased by 113 bps, while in Tata Chemicals, it went down by 96 bps.
Stocks That Caught LIC’s Attention in Q3
While LIC was offloading shares in some sectors, it was actively increasing its stake in others, particularly in the FMCG space. Stocks like Procter & Gamble Hygiene, Patanjali Foods, Nestle India, and Dabur witnessed notable purchases. The insurer’s strategic buying indicates its confidence in the consumption-driven growth story in India.
Here are some of the top stocks where LIC increased its holdings:
| Company | Holding as of Sept Quarter (%) | Holding as of Dec Quarter (%) | Increase in Holding (%) |
|---|---|---|---|
| Procter & Gamble Hygiene | Less than 1% | 4.23 | N.A. |
| Bank of Maharashtra | 4.05 | 7.10 | 3.05 |
| Patanjali Foods Ltd. | 3.72 | 5.16 | 1.44 |
| Cochin Shipyard Ltd. | Less than 1% | 2.42 | N.A. |
| Nestle India Ltd. | 2.79 | 4.12 | 1.33 |
| Astral Ltd. | Less than 1% | 2.31 | N.A. |
| CESC Ltd. | 3.41 | 4.70 | 1.29 |
| Dabur India Ltd. | 3.66 | 4.66 | 1.00 |
| Shyam Metalics & Energy Ltd. | 2.49 | 3.47 | 0.98 |
| Cyient Ltd. | 2.17 | 3.11 | 0.94 |
Among the top buys, Procter & Gamble Hygiene witnessed the highest increase in LIC’s stake to 4.23%. Additionally, LIC’s shareholding in Bank of Maharashtra jumped by 305 bps, making it one of the most significant buys in Q3.
Market Outlook and Expert Opinion
The Indian stock market has faced a turbulent start in 2025, driven by a combination of high valuations, slowing earnings growth, and global economic uncertainties. Analysts are advising investors to remain cautious and adopt a long-term investment strategy, focusing on large-cap stocks for stability.
Vinod Nair, Head of Research at Geojit Financial Services, noted,
“The broader market remains under pressure, but the resilience of large-cap stocks is a positive sign. The Indian market has successfully navigated similar challenges in the past, from taper tantrums to geopolitical concerns.”
He added,
“With the broad market having corrected by 14%, the downside appears limited, supported by strong long-term economic fundamentals. India’s GDP growth is projected to rise from 6.4% in FY25 to 7.0% in FY26. If earnings growth returns to the long-term average of 15% in FY26, the market could recover from the current negative trend.”
For long-term investors, this correction offers an excellent opportunity to accumulate quality stocks at lower valuations. Analysts recommend adopting a systematic investment approach to navigate the ongoing market volatility.
Conclusion
LIC’s strategic reshuffling of its portfolio in Q3 reflects its proactive approach to managing risks and capitalizing on profit-booking opportunities amid volatile market conditions. By diversifying its investments across sectors and increasing stakes in consumption-driven stocks, LIC demonstrates its confidence in the long-term growth prospects of the Indian economy.
As the market continues to consolidate, LIC’s investment strategy serves as a valuable indicator for retail investors looking to make informed decisions. Investors are advised to stay patient, focus on large-cap stocks, and adopt a long-term accumulation strategy to benefit from potential market recovery in the coming quarters.
This strategic insight into LIC’s investment moves provides a comprehensive guide for investors navigating the dynamic landscape of the Indian stock market.
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.