LIC’s $2 billion contrarian guess: 10 shares the DII big purchased whereas the market bled
LIC added 2.32 crore shares in Bajaj Finance, spending an estimated Rs 2,167 crore even because the inventory dropped 19% throughout the quarter. It purchased Rs 2,153 crore value of Bharti Airtel, Rs 2,143 crore of TCS, which fell 26%, and Rs 2,068 crore of Cipla. Most dramatically, it practically doubled its stake in Indian Railway Finance Company (IRFC), including 18.72 crore shares value Rs 2,044 crore as shares of the PSU rail inventory crashed 30% to report the steepest decline amongst its high purchases, in accordance with information from Prime Database.
The shopping for spree prolonged to Infosys, down 23%, the place LIC added an estimated Rs 1,897 crore value of shares, and Hindustan Aeronautics Ltd (HAL), down 21%, the place it deployed Rs 1,819 crore. HCL Applied sciences, Hyundai Motor India and Maruti Suzuki rounded out the highest ten purchases, with Rs 1,399 crore, Rs 1,390 crore, and Rs 1,374 crore invested respectively.
The sample is deliberate and constant as LIC purchased into weak point throughout the board, with the typical inventory value of the 58 corporations by which it raised holdings falling 12.24% throughout the quarter, in accordance with the info.Additionally Learn | India Inc promoters pour crores to purchase the dip in these 18 shares. Did you promote too early?
But even because it purchased aggressively, LIC was concurrently trimming positions elsewhere and the distinction reveals a extra nuanced portfolio technique than easy bottom-fishing. Its largest promote was State Financial institution of India (SBI), the place it offloaded 4.22 crore shares value Rs 4,626 crore whilst SBI inventory barely moved, falling simply 0.29%. It additionally reduce ICICI Financial institution by Rs 3,449 crore and decreased HDFC Financial institution by Rs 1,145 crore regardless of that inventory falling 26% in a notable divergence from its buy-the-dip playbook utilized to non-public sector friends like Bajaj Finance and Infosys. Coal India and Tata Metal, each of which really gained throughout the quarter, additionally noticed LIC trim its positions.
The general portfolio influence of the market downturn was extreme. LIC’s complete holding in NSE-listed corporations stood at Rs 15.11 lakh crore as of March 31, 2026 to report a decline of 13.63% over the prior quarter, per Prime Database. Its share by worth in NSE-listed corporations slipped marginally to three.71% from 3.72%. Nonetheless, when measured solely in opposition to free-float, excluding promoter holdings, LIC’s share really edged as much as 7.42% from 7.39%, suggesting its shopping for was proportionally bigger than the market’s general transfer.
The proportion-stake will increase inform their very own story of conviction. Firstsource Options noticed LIC cross the 4% threshold from under 1%, even because the inventory fell 39% to report the sharpest decline among the many insurer’s high buys by share. IRFC’s stake jumped from 1.10% to 2.54%. Cipla climbed from 7.69% to 9.59%. Hyundai Motor India moved from 2.24% to three.04%, HAL from 2.45% to three.11%. LIC additionally initiated or crossed the 1% threshold in Max Healthcare, Indian Lodges, and Persistent Techniques, all of which fell between 7% and 22% throughout the quarter.Additionally Learn | Nifty’s 2 pillars now going through structural headwinds: Ravi Dharamshi’s warning on IT & consumption
LIC’s largest holdings by worth stay anchored within the nation’s greatest names. Reliance Industries tops the listing at Rs 1,21,548 crore, adopted by State Financial institution of India at Rs 78,638 crore and Larsen & Toubro at Rs 59,684 crore. ITC, Infosys, TCS, HDFC Financial institution, Bharti Airtel, ICICI Financial institution, and ONGC full the highest ten. By share stake, LIC stays the dominant institutional drive in IDBI Financial institution at 49.24% and LIC Housing Finance at 45.24%, with double-digit stakes in ITC, L&T, Dr. Reddy’s, Tech Mahindra, and Coal India.
The March quarter shopping for follows a well-established LIC playbook of utilizing market dislocations to build up high quality at scale. With LIC holding going up in 58 corporations whose common value fell 12.24%, the insurer has successfully elevated its publicity to the market’s ache factors. Whether or not that proves prescient is determined by how rapidly the shares it loaded up on from IT majors battered by world uncertainty to IRFC caught in a PSU selloff get well from their worst quarter in years.
For now, LIC has performed what it has all the time performed when the market bleeds: purchased extra.
(Disclaimer: Suggestions, recommendations, views and opinions given by the specialists are their very own. These don’t signify the views of The Financial Instances)
