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News Topical, Digital Desk : The country's largest domestic institutional investor, Life Insurance Corporation of India (LIC), has suffered a huge loss in July 2025. Business Standard, a major business newspaper, has released a detailed report on this. Their report shows that due to the fall in the market, the value of LIC's share portfolio has decreased by ₹ 46,000 crores. The biggest loss was from Reliance Industries and IT sector shares. By the end of June 2025, the total value of LIC's 322 shares was ₹ 16.10 lakh crores. By July 25, 2025, it had come down to ₹ 15.64 lakh crores, meaning LIC suffered a mark-to-market loss of ₹ 46,000 crores.
However, LIC’s portfolio is still up by ₹1.94 lakh crore compared to April 2025, when Nifty and Sensex were at their 52-week lows.
| Company | Decline in portfolio value |
|---|---|
| Reliance Industries | ₹10,180 crore |
| TCS, Infosys, HCL Tech, TechM | ₹15,321 crore jointly |
| L&T | ₹4,212 crore |
| Bharti Airtel | ₹1,764 crore |
| ITC | ₹1,362 crore |
Why is there fear in the market-
Delay in trade deal with America- Investors are worried that no trade agreement has been reached between America and India yet. FII selling- Foreign investors sold shares worth ₹20,263 crore in July 2025. DII (domestic investors) have invested ₹39,826 crore, which has brought some stability to the market.
Foreign investors are also cautious about regulatory strictness after the Jane Street case. The director of Alfaniti Fintech told Business Standard that before the US tariffs come into effect on August 1, the market may fall by 2-3% more.
| Company | Increase in portfolio value |
|---|---|
| Hindustan Unilever (HUL) | ₹1,821 crore |
| ICICI Bank | ₹1,507 crore |
| SBI | ₹1,133 crore |
| Mahindra & Mahindra, UPL, Patanjali Foods etc | ₹760 crore jointly |
What is the way forward? G Chokkalingam (Equinomics Research) told Business Standard that if the quarterly results of companies are good and interest rates remain low, then a recovery of 5-7% is possible in Nifty. But at present there is a "Wait & Watch" environment in the market.
What does it mean for investors
If you have taken shares in LIC's portfolio, especially Reliance, IT shares, L&T or Airtel, then do not panic about the fall in the short term. Defensive shares like HUL, ICICI Bank and SBI remain strong.
Keep an eye on the trade deal between America and India. At the same time, the direction of the market will be a little clear after August 1. Overall, this is the time to adopt a cautious investment strategy - not to book profits, but to add the right stock at the right time.
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