Stock Market: LIC suffered a loss of Rs 11,500 crore, where did this huge loss occur?

News Topical, Digital Desk : Life Insurance Corporation (LIC) has suffered a huge loss on its investment today. In fact, after the government imposed a new excise duty on cigarettes, the shares of ITC Ltd have seen a sharp decline in two trading sessions. LIC has invested in the company. This heavy selling has seen a sharp decline in the value of the corporation's investment. On January 2, ITC shares fell by about 5% to reach a new 52-week low of ₹345.25, although some losses were later recovered. In the new year 2026, this stock has fallen by more than 14% in just two trading sessions.

How much impact will this have on the company's investors?

According to the shareholding pattern as of the end of the July-September quarter of FY2026, public shareholders hold 100% of ITC's stake, and there is no promoter or promoter group in the company. During this period, LIC held a 15.86% stake in ITC, while General Insurance Corporation of India held 1.73% and New India Assurance Company held 1.4%. Due to the decline in ITC, the market value of LIC's investment has declined by more than ₹11,468 crore. At the lowest level, the value of LIC's stake has fallen to ₹68,560 crore, from ₹80,028 crore at the closing level on December 31. Similarly, based on the market value of their investments, GIC has lost approximately ₹1,254 crore and New India Assurance has lost approximately ₹1,018 crore. Thus, a total value of ₹13,740 crore was wiped out from the portfolios of these three government-owned insurance companies in just two days. Keep in mind that these losses are virtual, meaning they are only calculated, and not real. Insurance companies will incur real losses when they sell their shares at these market prices. how the stock performed. On January 2, ITC shares finally closed at ₹350.10, down nearly 4%. The stock has fallen by more than 13% in the past five days and more than 15% in the past six months. Due to this sharp decline, the company's market capitalization has also declined by approximately ₹72,000 crore in just two days, and now stands at approximately ₹4,38,639 crore. Meanwhile, LIC shares closed at ₹861, up nearly 1%, while GIC shares closed marginally higher at ₹380. 

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