Daijiworld Media Network - Mumbai

Mumbai, Feb 18: State-run insurance giant Life Insurance Corporation of India (LIC) appears to have repositioned its massive Rs 17.5 lakh crore equity portfolio, increasing exposure to IT stocks while reducing stakes in select banking counters, even as broader market trends move in the opposite direction.

Market data indicates that LIC has raised its holdings in frontline information technology companies amid renewed investor interest in the sector, driven by expectations of improved global demand and stable earnings outlook. The shift comes at a time when IT stocks have witnessed fresh inflows on hopes of a recovery in discretionary spending in key overseas markets.

Conversely, the insurer is understood to have pared exposure to certain banking stocks, despite the sector remaining a key driver of domestic market performance. Analysts suggest that profit booking, portfolio rebalancing and valuation concerns could be behind the move.

LIC, which remains one of the largest institutional investors in the Indian equity market, often plays a stabilising role during periods of volatility. Its investment strategy is closely tracked by market participants given the scale of its holdings across blue-chip companies.

While the insurer has not officially commented on specific portfolio adjustments, experts believe the reallocation signals a calibrated approach aimed at balancing risk and capturing sectoral opportunities amid evolving macroeconomic conditions.

The development comes against the backdrop of fluctuating global cues, shifting interest rate expectations and ongoing earnings season trends, all of which continue to shape institutional investment strategies.