LIC's Rs 15 lakh crore portfolio shakeup: Defence stocks in, retail darlings Suzlon, Vedanta out
ADVERTISEMENT LIC has reduced positions in popular retail favorites, including Suzlon Energy, Reliance Power, and Vedanta - stocks that have been darlings of small investors despite their volatile performance. The insurance giant's current portfolio now spans 277 stocks, as shown by data collated from ACE Equity.
LIC's most notable new additions reveal a clear defence sector bet, with the PSU insurer taking fresh stakes in Mazagon Dock Shipbuilders (3.27% holding worth Rs 3,857 crore), while increasing positions in established defence names. The insurer boosted its stake in Cochin Shipyard by 13 basis points to 3.05%, Bharat Electronics by 10 basis points to 1.99%, and Hindustan Aeronautics Limited (HAL) by 5 basis points to 2.77%.
Defence stocks have been in focus for most of 2025 amid geopolitical tensions in various parts of the world, India's increased defence spending after Operation Sindoor, the government's indigenisation focus, and NATO's defence spending targets.In the last six months, the Nifty India Defence index is up 34% with PSU shipbuilder GRSE shares leading the rally with 71% returns.
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Also Read | Mutual funds cut Rs 1,700 crore exposure in 9 defence stocks. Too expensive to buy or smart exit?
Beyond defence, LIC significantly ramped up exposure to technology and financial services. The insurer increased its Infosys stake by 43 basis points to 10.88% (now worth Rs 63,400 crore), while adding 48 basis points to HCL Technologies, bringing its holding to 5.31% valued at Rs 21,900 crore.
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In a bold move, LIC boosted its Jio Financial Services position by 55 basis points to 6.68%, signaling confidence in Mukesh Ambani's financial services venture. The insurer also increased Tata Motors' exposure by 74 basis points to 3.89%, betting on the automotive giant's electric vehicle transition.
LIC's banking portfolio witnessed selective repositioning, with the insurer reducing heavyweight positions while backing select PSU banks. HDFC Bank saw a 30 basis point reduction to 5.45%, while ICICI Bank was trimmed by 42 basis points to 6.38%.
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However, Bank of Baroda benefited from a 61 basis point increase to 7.51%, while Canara Bank received a 13 basis point boost to 5.85%, indicating LIC's preference for PSU banking exposure.
Also Read | The great Adani bet: Mutual funds & LIC are buying what GQG, FIIs are selling
ADVERTISEMENT The most dramatic moves came in LIC's booking profits in some of the favorites of retail investors. Reliance Power, a multibagger stock beloved by small investors, saw its LIC holding reduced by 13 basis points to 2.43%. Vedanta faced a 21 basis point cut to 6.69%, while Suzlon Energy saw a 1 basis point reduction.Hero MotoCorp witnessed the largest single reduction, with LIC slashing its stake by 531 basis points to 6.53%. Other reductions were Navin Fluroine, Divi's Labs, Marico, Apollo Hospitals, Eicher Motors, JSW Energy, Kotak Mahindra Bank, Bharti Airtel, and SBI.
LIC's largest holding remains Reliance Industries (RIL) at Rs 1.3 lakh crore (6.93% stake), which saw a 19 basis point increase, reaffirming the insurer's faith in India's largest conglomerate. ITC retained its position as the second-largest holding at Rs 82,200 crore (15.8% stake) with a 28 basis point increase.The top 10 holdings account for over Rs 6 lakh crore of LIC's portfolio, with HDFC Bank (Rs 68,600 crore), State Bank of India (Rs 66,300 crore), and Larsen & Toubro (Rs 64,100 crore) completing the largest positions.Beyond individual stock moves, LIC's portfolio reshuffle reveals clear sectoral preferences. The insurer added positions in renewable energy through IREDA (2.21% fresh stake), infrastructure via increased RVNL exposure (22 basis points to 6.06%), and consumer goods through Patanjali Foods (148 basis points increase to 9.14%).With equity markets at record highs, the insurer's selective approach suggests a more cautious stance on valuations while maintaining exposure to long-term India growth themes.
(Data: Ritesh Presswala)
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