LIC Managing Director Dinesh Pant expressed strong confidence in India's economic and market outlook at the ET NOW Markets Summit 2026, highlighting robust cash flows and sustained domestic participation in markets. According to reports from ET NOW, Pant credited Indian society and corporates for the strength of cash flows in the economy, stating that the healthy cash flow environment is the result of the combined efforts of corporate India. He noted that the previous year was phenomenally good for LIC and that incremental investment activity has remained robust. LIC Chairman M. R. Kumar has advised investors not to worry about current share price fluctuations, attributing them to overall market conditions and emphasizing that investors should remain patient as the company is focused on creating long-term shareholder value through strategic initiatives and operational improvements.
LIC has announced plans to invest over ₹3 lakh crore across various asset classes in FY24, with approximately ₹90,000 crore earmarked for equity investments. This ambitious investment strategy reflects LIC's commitment to enhancing its asset base and capitalizing on market opportunities despite recent volatility. As reported by ET NOW, Pant revealed that 25-30 per cent of LIC's total portfolio is invested in equities, while the insurer's assets under management (AUM) are now approaching ₹60 lakh crore. LIC's incremental inflows are close to ₹6 lakh crore and are expected to improve by around 10 per cent annually. The company is focusing on retaining and increasing its market share by enhancing its product mix, particularly in pension and group schemes, which have shown strong growth.
Pant highlighted the growing role of domestic institutional investors (DIIs), noting that they have remained consistent investors and have largely offset foreign institutional investor (FII) outflows. According to ET NOW reports, he observed that history has repeatedly shown market corrections to be opportunities for investors and emphasised that India's growth story continues to move upward, with LIC remaining highly confident in the country's robust economic trajectory. He added that the current headwinds should not be viewed as challenges but as opportunities for the country, with India's long-term prospects remaining strong despite short-term market volatility.
On investment strategy, Pant stated that Indian markets are currently in a good position for investors to start buying, while pointing to significant opportunities emerging in the fixed-income space. As reported by ET NOW, he advocated for a diversified investment approach, stating that the multi-asset allocation category is safer for investors during periods of volatility and is likely to gain traction going forward. He emphasised that "Return of Money is more important than Return on Money!" and advised investors to exercise caution regarding equity exposure exceeding 30 per cent of their total portfolio, while acknowledging that equities as an asset class remain highly attractive at present. The insurer has witnessed a flattish trajectory in embedded value with embedded value trends remaining relatively stable.
Pant stressed the importance of foreign capital for India's development, particularly for infrastructure growth, while noting that India has reduced its dependence on FII inflows as domestic investors continue to invest consistently. According to ET NOW reports, he expressed confidence that foreign capital will return, citing the resilience of Indian markets, and advised that India should focus on creating opportunities and infrastructure that naturally attract global investors rather than relying solely on FII inflows. He noted that the participation of FIIs remains significant for Indian markets and should not be discounted, with long-term investments from foreign investors necessary to support India's infrastructure ambitions.
