LIC, India’s largest institutional investor, recorded huge losses in July-losing ₹66,000 crore from its equity portfolio, a roughly 4.15% decline. Even well-regarded names such as Reliance Industries, Axis Bank, TCS, and HCL Tech could not shield the insurer’s portfolio from the broader equity slump.

The main culprits? A sharp mid-cap sell-off, foreign institutional exit (FIIs dumped over ₹2,000 crore in Indian equities in the same period), and weak Q1 earnings from financial heavyweights like Bajaj Finance. LIC’s heavy exposure to these blue-chip names made it especially vulnerable.

The net result: LIC’s loss underscores how even a diversified, large-scale investor cannot escape market volatility. Analysts now suggest the insurer may rebalance in favor of stable public sector units (PSUs) or fixed income instruments in the near term.