LIC slashes stake in nearly 100 stocks in Q3; Tata Power, HPCL among top 10 sells

LIC Portfolio Stocks: During the third quarter of the ongoing financial year 2024-45, India’s biggest life insurer and domestic institutional investor (DII), Life Insurance Corporation of India (LIC) slashed stakes in 98 stocks as it booked profits amid high valuations and a slowdown in earnings.

With this, LIC’s share in companies listed on the NSE went down to an all-time low of 3.51%. Meanwhile, LIC’s portfolio value declined to ₹15.28 lakh crore in Q3 from ₹16.75 lakh crore in the September quarter, recording of fall of 8.80%, according to the analysis by Prime Infobase.

However, during the quarter, LIC also raised ownership in 71 stocks.

Stocks that LIC sold in Q3

LIC was seen selling stakes in a few Tata group stocks in Q3 like Tata Power, Tata Chemicals and Voltas.

In Tata Power, it offloaded a 154 bps stake to bring its shareholding to 3.13% in Q3 from 4.67% in Q2. In Voltas, LIC’s stake went down by 113 bps to 2.03% while in Tata Chemicals it declined by 96 bps to 7.25%. LIC also offloaded a stake in HPCL, bringing it down below 1%. Similarly, in Strides Pharma too its stake slipped below the 1% mark.

Other stocks where LIC sold the highest stake in percentage terms included Paradeep Phosphates, India Cements, Divi’s Labs, CAMS and Coforge.

Stocks that LIC bought in Q3

Meanwhile, FMCG stocks like Procter & Gamble Hygiene, Patanjali Foods, Nestle India and Dabur caught LIC’s attention in Q3, witnessing significant purchases by the institutional investor.

In stocks like Cochin Shipyard and Astral, LIC’s stake increased to over 1% in Q3 to 2.42% and 2.31%, respectively.

Shyam Metalics, Cyient, Bank of Maharashtra and CESC were among the top stocks that saw the highest increase in LIC’s portfolio holdings in percentage terms for the quarter ended December 2024.

Market Outlook

With the stock market facing a turbulent 2025 amid uncertainty surrounding Trump’s economic policies and high valuations and a slowdown in earnings, analysts are advising investors to remain patient and stick to large-cap stocks.

“The broader market remains under pressure, but the resilience of large-cap stocks is a positive sign. The Indian market has successfully navigated similar challenges in the past, from taper tantrums to geopolitical concerns. The current correction is driven by a combination of factors, including tapering, an earnings slowdown, elevated valuations, and trade uncertainties,” said Vinod Nair, Head of Research, Geojit Financial Services.

Nair said the market is now in the final phase of consolidation. “With the broad market having corrected by 14%, the downside appears limited, supported by strong long-term economic fundamentals. India’s GDP growth is projected to increase from 6.4% in FY25 to 7.0% in FY26, if the earnings growth reverts to the long-term average of 15% in FY26, we can expect the market to move out of the negative trend,” he added. For long-term investors, this is an opportune time to remain patient and adopt an accumulation strategy, advised the stock market expert.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.