India’s largest domestic institutional investor, the Life Insurance Corporation of India (LIC), has taken a sharp, contradictory stance in the equity market. Even as many investors withdraw from information technology stocks amid concerns around artificial intelligence, LIC has stepped up purchases in the sector, while simultaneously trimming exposure to financials, metals and industrial majors.
Data from Prime Database shows that during the December quarter, LIC purchased shares worth an estimated Rs 3,136 crore in Tata Consultancy Services (TCS). It also invested about Rs 2,293 crore in HCL Technologies and initiated a notable position in Coforge, according to a report from The Economic Times.
IT Allocation Rises Despite Sector Slump
The insurer’s exposure to IT rose significantly in just three months. The total value of its technology holdings increased from Rs 1.82 lakh crore to Rs 2.17 lakh crore, lifting the sector’s share in LIC’s portfolio from 11.32 per cent to 12.43 per cent, the report added.
This increase came even as several IT stocks corrected sharply, some falling as much as 30 per cent from their recent peaks. Market sentiment has been weighed down by concerns that AI-driven automation could disrupt India’s outsourcing-led services model. LIC, however, appears to be positioning for a recovery rather than a prolonged downturn, as per the report.
One of the most striking moves was in Coforge, where LIC’s stake surged from under 1 per cent in September to 4.66 per cent by December, reveals the report. The midcap IT firm has been among the worst hit in the recent selloff, sliding over 30 per cent from its 52-week high.
Financials, Industrials And Metals See Heavy Selling
While building its IT exposure, LIC pared back holdings in major banking and financial names. The largest reduction came in the State Bank of India (SBI), where it sold shares worth Rs 3,080 crore. It also trimmed stakes in HDFC Bank and Bank of Baroda. Although financial services remain LIC’s biggest sector allocation at Rs 4.64 lakh crore, their portfolio share slipped from 27.21 per cent to 26.52 per cent during the quarter, the report added.
The insurer also reduced exposure to industrial and energy heavyweights such as Larsen & Toubro (L&T) and Reliance Industries, the report said. In metals, it cut positions in Hindalco Industries, Vedanta, and lowered its stake in Steel Authority of India.
Selective Buying Beyond Technology
Outside IT, LIC deployed Rs 2,942 crore into Sun Pharmaceutical Industries, making it the second-largest purchase after TCS, states the report. The insurer also added to positions in NMDC, Bajaj Auto and Coal India, indicating continued interest in public sector undertakings and domestic demand-driven themes.
Conversely, Adani Ports & SEZ and Maruti Suzuki featured among notable stake reductions.
Overall, LIC increased holdings in 73 NSE-listed firms during the quarter, while cutting exposure in 90 others. Interestingly, the average share price movement of companies where it increased stakes was just 0.14 per cent over the same period, suggesting a long-term accumulation strategy rather than short-term momentum chasing, according to the ET report.
