Stock Market Crash Wipes Out ₹25 Lakh Crore in Government Stocks, LIC Takes the Biggest Hit

The stock market faced a major downturn, leading to a massive ₹25 lakh crore loss in the valuation of government-owned companies. Among them, LIC (Life Insurance Corporation of India) suffered the biggest setback, as its stock took a sharp hit.

Impact of the Market Crash

• Public sector stocks saw heavy declines, erasing a significant portion of investor wealth.
• LIC’s market valuation dropped the most, reflecting weak sentiment toward PSU stocks.
• The sell-off triggered panic among investors, particularly those holding shares in state-owned enterprises.

Reasons Behind the Decline

1. Global Market Uncertainty – Concerns over economic slowdowns and geopolitical tensions contributed to the downturn.
2. FII Exit from PSUs – Foreign Institutional Investors (FIIs) reduced their holdings in public sector companies, worsening the market impact.
3. Weak Market Sentiment – The overall negative outlook led to widespread selling across government stocks.

What’s Next for PSU Stocks?

Market analysts believe that while short-term volatility is expected, the long-term fundamentals of some government companies remain strong. Investors are advised to stay cautious and track economic developments before making major investment decisions.

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