SYNOPSIS:
LIC reshaped its portfolio in Q2 FY26, investing Rs. 21,700 crore. The insurer raised stakes in 76 firms, trimmed 81, and added 13 new stocks, reflecting confidence amid volatile markets.
Life Insurance Corporation of India is a statutory corporation established on 1st September 1956, engaged in the business of life insurance in and outside India. The company offers a range of individual and group insurance solutions, including participating, non-participating and unit-linked business. Its portfolio comprises various insurance and investment products such as protection, pension, savings, investment, annuity, health, variable and capital redemption and annuity certain (CRAC).
LIC expanded its investment footprint during the September 2025 quarter, and emerged as a key stabilising force in domestic equities, stepping up its purchases at a time when foreign institutional investors were aggressively selling amid weak market sentiment.
During the quarter, LIC made net equity investments worth nearly Rs. 21,700 crore, signalling strong confidence in India’s long-term growth outlook. The insurer increased its shareholding in 76 listed firms, trimmed positions in 81, and introduced 13 new names to its portfolio for the first time. Meanwhile, LIC’s name was absent from the shareholding disclosures of 31 companies, though it remains uncertain whether it fully divested these holdings or if its ownership simply declined below the 1 percent reporting threshold.
The article highlights the top stocks in which LIC increased and trimmed its stakes in Q2 FY26, involving share transactions worth several thousand crores.
LIC Stake Increase
During the September 2025 quarter, LIC increased its shareholding across several leading companies, signalling confidence in India’s corporate growth momentum. The insurer raised stakes in blue-chip names such as SBI, Sun Pharma, HCL Tech, and Coal India, among others.
Notably, Cipla saw one of the steepest increases in LIC’s holdings, rising from 4.76 percent in June 2025 to 7.5 percent in September 2025. These strategic additions, worth thousands of crores, underline LIC’s active role in supporting market stability and long-term value creation.
| Stock | June 2025 Stake (%) | September 2025 Stake (%) | Net Buying |
| State Bank of India | 9.2 | 9.59 | Rs. 5,599.1 crore |
| Sun Pharmaceuticals | 3.38 | 4.22 | Rs. 3,226 crore |
| HCL Technologies | 5.31 | 6.09 | Rs. 2,939 crore |
| Coal India | 9.85 | 10.74 | Rs. 2,119 crore |
| NTPC | 4.34 | 4.94 | Rs. 1,992 crore |
| Tata Motors Passenger Vehicles | 3.89 | 4.65 | Rs. 1,904 crore |
| Cipla | 4.76 | 7.5 | Rs. 1,686 crore |
| Tata Consultancy Services | 4.86 | 5.02 | Rs. 1,654 crore |
| Oil & Natural Gas Corporation | 9.44 | 9.98 | Rs. 1,646.2 crore |
LIC Trimming Stake
On the other hand, the insurance giant LIC trimmed its holdings in several major companies during the September 2025 quarter. HDFC Bank witnessed the largest sell-off, with LIC trimming its stake by selling shares worth around Rs. 3,129.1 crore, followed by ICICI Bank (Rs. 2,337.5 crore) and Larsen & Toubro (Rs. 2,243 crore).
Other notable reductions included Bharti Airtel (Rs. 2,204.5 crore), Mahindra & Mahindra (Rs. 2,149 crore), Maruti Suzuki (Rs. 2,051.7 crore), Kotak Mahindra Bank (Rs. 1,993 crore), Vedanta (Rs. 1,812.2 crore), BPCL (Rs. 1,676.6 crore), and Bajaj Finance (Rs. 1,645 crore).
Written by Shivani Singh
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