The volatility of the stock market is now impacting the country's largest investment company, Life Insurance Corporation of India (LIC). A significant decline in the value of LIC's share portfolio was recorded in July 2025. The ongoing market fluctuations and selling by foreign investors have affected LIC's investments by approximately ₹46,000 crore.
Losses Between June and July
According to a Business Standard report, the value of LIC's investments in 322 listed companies was approximately ₹16.10 lakh crore at the end of June 2025. However, by July 25, it had decreased to ₹15.64 lakh crore. This means the company incurred a mark-to-market loss of about ₹46,000 crore in just a few weeks of July.
However, if compared to the figures from April 2025, when the market was at its 52-week low, LIC's portfolio is still approximately ₹1.94 lakh crore higher than that time.
Companies with the Biggest Losses
The biggest setback from this decline came from Reliance Industries, where LIC suffered a loss of approximately ₹10,180 crore alone. Additionally, major IT sector companies such as TCS, Infosys, HCL Tech, and Tech Mahindra collectively saw a decrease of ₹15,321 crore.
L&T saw a value decrease of ₹4,212 crore, Bharti Airtel ₹1,764 crore, and ITC ₹1,362 crore.
Reasons for the Market Decline
Several negative factors influenced the stock market during July. The biggest concern was the trade agreement between the US and India, which seems to be continuously delayed. This uncertainty has made foreign investors cautious.
Consequently, foreign investors withdrew approximately ₹20,263 crore from the stock market in July 2025. However, domestic institutional investors (DII) invested ₹39,826 crore in the market, which provided some stability.
Jane Street Incident and Increased Scrutiny
In recent days, market regulators have become stricter following the Jane Street case. This has led to increased caution in the strategies of foreign institutional investors. According to reports, the market is expected to decline by another 2 to 3 percent due to the US plans to implement certain tariffs from August 1.
Gains in Some Companies
While many companies saw significant declines, some stocks also showed strength. The value of LIC's investment in Hindustan Unilever (HUL) increased by ₹1,821 crore. ICICI Bank saw an increase of ₹1,507 crore, and State Bank of India (SBI) saw an increase of ₹1,133 crore.
Additionally, some midcap and smallcap stocks, such as Mahindra & Mahindra, UPL, and Patanjali Foods, collectively recorded gains of approximately ₹760 crore.
Impact of Results on the Market
According to G. Chokkalingam, head of Equinomics Research, if companies' April-June quarter results are good and there are no interest rate hikes, the market could recover by 5 to 7 percent. Currently, there is a 'wait and watch' environment in the market.
