Life Insurance Corporation of India (LIC), the country's biggest domestic institutional investor, reduced its shareholding in NSE-listed stocks to 3.71% as of March 31, 2026, from 3.72% in the previous quarter. According to data compiled by primeinfobase.com, this marginal decline occurred during a period when the Indian stock market experienced a steep selloff due to the Middle East war that resulted in a steep spike in crude oil prices.
State Bank of India topped LIC's selling list, with the insurer offloading 4,22,25,994 shares worth ₹4,626 crore during the March quarter. ICICI Bank followed with 2,57,04,000 shares valued at ₹3,450 crore, while HDFC Bank saw LIC sell 1,32,43,043 shares worth ₹1,145 crore. The banking sector was among the most affected by LIC's divestment strategy, with Piramal Finance also featuring as LIC brought its stake below 1% in the company.
The insurance giant significantly reduced its exposure to metal and mining companies during the quarter. Coal India saw the third-highest sales in terms of value, with LIC selling 3,26,33,791 shares worth ₹1,431 crore. SAIL and Tata Steel stocks were also offloaded, amounting to ₹849 crore and ₹715 crore respectively. Grasim Industries, Britannia, and L&T were among other top stocks where LIC reduced stakes in Q4.
Despite the overall reduction, LIC demonstrated strategic value buying in select sectors. The insurer purchased TCS shares worth ₹2,143 crore, Infosys shares worth ₹1,897 crore, and HCL Technologies shares worth ₹1,399 crore. All three IT stocks were acquired during a period when they declined 15-25% due to AI-led disruption concerns. In the auto sector, LIC added Hyundai stocks worth ₹1,390 crore and Maruti stocks worth ₹1,374 crore. Among the top two purchases were Bajaj Finance with ₹2,167 crore and Bharti Airtel with ₹2,153 crore.
