Big IT Crash Hits Mutual Funds and LIC Hard

The year 2026 has turned out to be a tough one for India’s financial sector, especially in the information technology space. Mutual funds and Life Insurance Corporation of India (LIC) have faced heavy losses as the sharp fall in IT stocks continues to hurt portfolios.

Mutual funds together have lost nearly ₹3.5 lakh crore in IT investments so far this year. LIC too has seen a massive erosion of wealth, with losses crossing ₹42,500 crore in the same period. The biggest damage for both has come from two of India’s largest IT giants Infosys and Tata Consultancy Services (TCS).

For mutual funds, the combined loss in Infosys and TCS alone is close to ₹2 lakh crore, showing how concentrated exposure to these companies has magnified the impact. LIC, which also holds significant stakes in these firms, has seen its combined losses in Infosys and TCS climb above ₹26,000 crore.

This steep fall highlights the vulnerability of large institutional investors when sector-specific downturns strike. IT, once considered a safe and steady bet, has turned into a source of pain in 2026. The correction has not only shaken investor confidence but also raised questions about overdependence on a few big names.

The coming months will be crucial as markets watch whether IT stocks can recover or if the slide deepens further.