The Most Devastating Stock Market Crash: How LIC’s Portfoilio Shrinks by ₹1.5 Lakh Crore in 2025
So, What’s Causing the Stock Market Crash?
The Life Insurance Corporation of India (LIC), India’s largest insurance company, has taken a significant hit as the stock market continues to plummet. Despite being a major player in the Indian financial market, LIC’s stock portfolio has experienced a significant loss of ₹1.5 lakh crore in 2025, primarily due to the sharp decline in the value of its equity holdings.
The Loss: A Devastating Blow to LIC’s Portfolio
LIC’s portfolio of 310 stocks has been severely impacted by the current market situation. As of February, the value of its stock holdings stood at ₹13.4 lakh crore, a staggering loss of ₹1.45 lakh crore compared to the quarter ended December 2024. This devastating loss is a result of the global uncertainties and market turbulence, which has led to a significant downfall in the benchmark indices.
The Worst is Yet to Come?
The ongoing market crash has been particularly harsh on mid-cap and small-cap stocks, with even large-cap stocks not spared. Among LIC’s large holdings, ITC, TCS, Infosys, SBI, Mahindra & Mahindra, and HCL Tech, among others, have been affected significantly.
Stock Market Ailments: A Critical Analysis
- ITC: A 14.2% decline in value: LIC’s equity holding in ITC has been severely impacted, with the company’s stock shedding ₹17,000 crore in value.
- Larsen & Toubro (L&T): 11% decline in value: LIC’s holding in L&T has seen a significant erosion of ₹7,600 crore in value.
- **35+ stocks affected: At least 35 stocks in LIC’s portfolio have caused the insurer a dent of more than ₹1,000 crore so far this year.
The Biggest Holdings: A Closer Look
- Reliance Industries (RIL): LIC has a stock holding worth almost ₹1.04 lakh crore in the country’s largest company by market capitalization.
- HDFC Bank: LIC’s holding in HDFC Bank is valued at approximately ₹92,432 crore.
- TCS: The company’s stock has seen a 6.1% decline in value, eroding ₹25,420 crore of LIC’s portfolio value.
What’s Next for the Stock Market?
As the situation continues to unfold, it is clear that the current market crash has had a profound impact on the stock market. With the worst yet to come, it is crucial for investors to remain vigilant and assess their portfolios carefully. As the economy continues to navigate the uncertainty, the real question is: what does the future hold for the Indian stock market?
Conclusion
The recent stock market crash has had a significant impact on LIC’s portfolio, with a loss of ₹1.5 lakh crore in 2025. As the situation continues to evolve, it is essential to remain cautious and assess our portfolios carefully. As the market continues to navigate the uncertainty, one thing is clear – the future of the stock market remains uncertain.
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