Mumbai: India’s largest institutional investor, Life Insurance Corporation of India, has taken a different path from many other investors. While several market participants reduced exposure to IT stocks due to fears around artificial intelligence and slowing global demand, LIC increased its investments in the sector.
IT Allocation Rises Despite Weak Sentiment
During the December quarter, LIC bought shares worth about Rs 3,136 crore in Tata Consultancy Services. It also invested around Rs 2,293 crore in HCL Technologies and sharply increased its stake in Coforge.
LIC’s total investment in IT companies rose from Rs 1.82 lakh crore to Rs 2.17 lakh crore in just three months. The sector’s share in its portfolio increased from 11.32 percent to 12.43 percent.
This comes at a time when many IT stocks have fallen up to 30 percent from their recent highs. Concerns remain that artificial intelligence may affect India’s outsourcing business. However, LIC appears to believe the correction offers a long-term opportunity.
In Coforge, LIC’s stake jumped from below 1 percent in September to 4.66 percent by December, even as the stock declined sharply.
Selling In Financials And Metals
At the same time, LIC reduced its exposure to banks and financial companies. The biggest sale was in State Bank of India, where it sold shares worth Rs 3,080 crore. It also trimmed stakes in HDFC Bank and Bank of Baroda.
Even after the reduction, financial services remain LIC’s largest sector exposure at Rs 4.64 lakh crore. However, its share in the portfolio fell slightly during the quarter.
LIC also reduced stakes in major companies like Larsen & Toubro and Reliance Industries. In metals, it cut positions in Hindalco Industries and Vedanta.
Selective Buying Beyond IT
Apart from technology, LIC invested Rs 2,942 crore in Sun Pharmaceutical Industries. It also increased holdings in NMDC, Bajaj Auto and Coal India.
Overall, LIC increased stakes in 73 NSE-listed companies and reduced exposure in 90 others. The small average price movement in the stocks it bought suggests LIC is investing for the long term rather than chasing short-term gains.
