Life Insurance Corporation of India (LIC), which is the largest institutional investor in the stock markets, increased its stake in 75 of its 285 holdings while adding seven new stocks to its portfolio during the September quarter.

More importantly, the insurer’s total gross purchase value was estimated at ₹56,000 crore (based on average prices during the quarter), with around half of the funds directed towards large-cap stocks. Meanwhile, the total selling value stood at over ₹38,000 crore, resulting in net buying of over ₹18,000 crore.

The quarter saw LIC reducing its holdings in 84 stocks and fully exiting seven companies. Meanwhile, for the remaining 111 stocks, its stake remained unchanged. The total value of LIC’s portfolio of 285 stocks rose to ₹16.76 lakh crore, compared to ₹15.72 lakh crore in the previous quarter, according to Prime database data.

Incidentally, the strategic buying spree aligns with robust inflows from both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) during the continued bull market. FIIs invested ₹88459 crore, while DIIs contributed ₹1.04 lakh crore during the same period. Market indices reflected this optimism, with the Sensex and Nifty surging 7% each, while the broader BSE midcap and BSE smallcap indices advanced 7% and 9.6%, respectively.

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Among blue-chip stocks, LIC’s most significant investments included Larsen & Toubro (L&T), with purchases worth ₹3,439 crore, followed by Maruti Suzuki India (₹2,857 crore) and Bajaj Finance Ltd (₹2,659 crore).

Other major investments included IndusInd Bank (₹2,396 crore), Mahindra & Mahindra (₹1,839 crore), State Bank of India (₹1,824 crore), Reliance Industries (₹1,686 crore), Bajaj Finserv (₹1,519 crore), Kotak Mahindra Bank (₹1,363 crore), and ICICI Bank (₹1,351 crore).

On the selling front, LIC’s top divestments included Lupin, with shares worth ₹2,230 crore sold, followed by NTPC and HDFC Asset Management, with sales valued at ₹2,129 crore and ₹2,105 crore, respectively.

Other major divestments included Hero MotoCorp (₹1,987 crore), Tata Consultancy Services (₹1,732 crore), GAIL India (₹1,726 crore), Voltas (₹1,718 crore), Tata Power (₹1,706 crore), and HPCL (₹1,562 crore).

LIC also diversified its portfolio by adding seven new stocks, namely Cyient Ltd, Shyam Metalics & Energy Ltd, Sanofi Consumer Healthcare India, Shriram Finance, IDFC First Bank, Bank of Maharashtra, and Bharat Electronics, with a combined purchase value of approximately ₹8,560 crore.

On the other hand, the insurer exited eight stocks, including Procter & Gamble Hygiene & Healthcare, Deepak Fertilisers & Petrochemicals Corp, Southern Petrochemical Industries, Sumitomo Chemical India, Reliance Home Finance, City Union Bank, Reliance Naval & Engineering, and GMR Airports, with the total selling value pegged at ₹3,777.25 crore based on average prices in the September quarter.