LIC Portfolio Rejig: Top Stocks Sold and Bought in Q2 FY26

Market Performance

India’s largest institutional investor, Life Insurance Corporation of India (LIC), made notable changes to its stock holdings in the second quarter of FY26. While the broader market remained volatile, LIC strategically adjusted its portfolio across sectors, including banking, pharma, IT, FMCG, metals, and energy.

Key Changes in LIC’s Stock Portfolio

In Q2 FY26, LIC’s shareholding by value in NSE-listed companies declined to 3.63% as of September 30, 2025, from 3.68% on June 30, 2025. In absolute terms, LIC’s holdings dropped 16.76% to ₹16.11 lakh crore.

The reduction was reflected in 94 companies, where the average stock price fell 1.14% during the period.

Top Stocks Where LIC Reduced Stakes

Several well-known companies saw LIC trimming its holdings. The most significant stakeholder reductions in Q2 include:

• NMDC Ltd. – from 5.53% to less than 1%
• Coforge Ltd. – from 5.28% to less than 1%
• Apollo Hospitals Enterprise Ltd. – from 2.17% to less than 1%
• Eicher Motors Ltd. – from 1.90% to less than 1%

Other notable reductions included:

• Dalmia Bharat Ltd. – down 1.48% to 3.21%
• Marico Ltd. – down 1.36% to 1.33%
• Federal Bank Ltd. – down 1.26% to 1.73%
• Bharat Petroleum Corp. Ltd. – down 1.14% to 7%
• Vedanta Ltd. – down 0.99% to 5.70%

These adjustments suggest a cautious trimming in sectors like metals, FMCG, and banking.

Top Stocks Where LIC Increased Stakes

LIC also made strategic additions to its portfolio during Q2 FY26. Among 68 companies with higher holdings, the top 10 included banking, pharma, and IT stocks:

• BSE Ltd. – increased to 5.58% from less than 1%
• Yes Bank Ltd. – increased to 3.98% from less than 1%
• Astral Ltd. – up 2.18% to 4.99%
• KPIT Technologies Ltd. – up 1.59% to 3.29%
• Voltas Ltd. – up 1% to 5.14%
• Cipla Ltd. – up 1.39% to 6.14%
• Dr. Reddy’s Laboratories Ltd. – up 1.39% to 9.69%
• Exide Industries Ltd. – up 1.32% to 4.09%
• Tata Elxsi Ltd. – up 1.29% to 5.44%
• Colgate-Palmolive (India) Ltd. – up 1.28% to 3.81%

The additions reflect LIC’s focus on banking, pharma, and tech sectors, suggesting confidence in growth potential in these industries.

LIC Portfolio Insights

• LIC’s adjustments highlight a strategic rebalancing across sectors.
• Trimming in metals, FMCG, and select banking stocks shows risk management amid market volatility.
• Increasing stakes in BSE, Yes Bank, pharma, and IT companies indicate a long-term growth focus.
• The portfolio moves reflect LIC’s role as India’s largest domestic institutional investor, impacting market liquidity and investor sentiment.

Summary

In Q2 FY26, LIC’s portfolio experienced a mix of stake reductions and increases, balancing risk and growth. While overall holdings declined to ₹16.11 lakh crore, the insurance giant selectively increased positions in key banking, IT, and pharma stocks. These shifts highlight LIC’s continued influence on the Indian stock market and reflect evolving investment strategies aligned with sectoral performance.