The country's largest institutional investor and insurance giant Life Insurance Corporation of India (LIC) has made a major change in its share portfolio. Amidst the recent fluctuations in the stock market and the fall in the market, LIC has adopted the policy of 'Buy on Dip' and has placed bets on many big companies. According to the recent data of PRIME Database, the total equity portfolio value of LIC has been recorded at Rs 15.49 lakh crore. Despite the correction in the market, LIC has purchased shares worth a net Rs 7,346 crore. During this period, LIC's biggest purchases were seen in Larsen & Toubro (L&T), Reliance Industries and Bharti Airtel, while the insurance company has booked huge profits from some big banking and consumer stocks. L&T, Reliance and Airtel became LIC's first choice: Know how much was purchased. Engineering and infrastructure giant Larsen & Toubro (L&T) topped LIC's purchase list. During this period, LIC made a new investment of about Rs 4,153 crore in the company by purchasing 1.06 crore additional shares of L&T. When L&T shares corrected by more than 9.25%, LIC strengthened its stake. India's most valuable company Reliance Industries was at second place, in which LIC bought 3.09 crore shares. The total investment in this was recorded at Rs 3,967 crore. The third big purchase was seen in telecom giant Bharti Airtel, where Rs 3,878 crore was invested by adding 2.04 crore new shares to the portfolio. Apart from this, LIC also invested huge amount in big stocks like Maruti Suzuki (Rs 2,968 crore), NTPC (Rs 2,926 crore), Power Grid Corporation (Rs 2,508 crore), Eicher Motors and UltraTech Cement. This pattern shows that the main focus of the insurance giant is on infrastructure, automobile, energy and telecom sectors. Heavy selling in ICICI Bank, SBI and Nestle India: Money withdrawn from these companies While on one hand LIC invested huge money in infrastructure and auto sector, on the other hand it booked profits by reducing its stake in banking and consumer sectors. The biggest sale of LIC was recorded in the leading private sector bank ICICI Bank. LIC diluted its portfolio by about Rs 4,453 crore by selling 3.16 crore shares of ICICI Bank. The second biggest selling took place in the country's largest public sector bank, State Bank of India (SBI). LIC sold 3.10 crore shares of SBI in the market, the estimated value of which was around Rs 3,209 crore. Apart from this, the major companies in which LIC reduced its stake include FMCG giant Nestle India (selling of Rs 2,623 crore), pharma company Divi's Laboratories (Rs 2,095 crore), Tech Mahindra (Rs 1,926 crore), Zydus Lifesciences (Rs 1,889 crore), Hindustan Zinc (Rs 1,826 crore), Coal India (Rs 1,579 crore) and Tata Motors. (Rs 1,566 crore) are included. What does this step mean for the stock market and retail investors? The dominance of domestic institutional investors (DIIs) in the Indian stock market has increased rapidly, and LIC alone leads this entire front. This strategy of LIC gives a clear signal to the general and retail investors that whenever there is an environment of uncertainty or decline in the market, the country's largest insurance company looks for opportunities to buy fundamentally strong large-cap companies. The decision of LIC to withdraw money from banking shares and reallocate it to infrastructure, auto, power and telecom sectors shows that in the coming times, excellent returns are being expected from the country's capital expenditure (CapEx) and consumption sectors. For retail investors, this portfolio re-balancing of LIC offers an excellent model of long-term wealth creation.
