Market Crash Causes LIC to Lose Rs 84,000 Crore

The ongoing stock market correction has significantly impacted the Life Insurance Corporation of India (LIC). Over the past one-and-a-half months, LIC’s stock portfolio value has dropped by around Rs 84,000 crore. As of December 2024, LIC’s holdings in listed companies were valued at Rs 14.72 trillion. However, by February 2025, this value fell to Rs 13.87 trillion, marking a 5.7% decline.

The decline is largely due to a more than 10% drop in shares of major companies like ITC, Larsen & Toubro, and State Bank of India, which together account for 29% of the total value erosion. Other sectors, including financials, information technology, infrastructure, power generation, and pharmaceuticals, also saw significant value losses.

Despite this, some companies like Bajaj Finance, Maruti Suzuki, Kotak Mahindra Bank, Bharti Airtel, and JSW Steel have added value to LIC’s portfolio. Analysts predict that market volatility will continue, with intermittent recovery periods, and advise caution in the near term.