LIC, India's largest domestic institutional investor, saw its portfolio value rise nearly ₹1.8 trillion as the market recovered from its April 2025 lows.

During this period, the 206 stocks held by LIC went up from ₹13.65 trillion to ₹15.43 trillion, indicating a profit of ₹1.78 trillion crore through market growth. According to the statistics, as of September 30, 2024, the value of the public sector insurer’s ownership in 203 companies was Rs 16.63 trillion.

Between April 7 and the present, the BSE Sensex and the Nifty 50 have gone up 13%.

Based on the shareholding pattern as of March 31, 2025, the gain value shows how much LIC earned from its shares in NSE 500 companies from April 7 to May 16, 2025, in which it owns more than 1%.

RIL and ITC are key gainers

Reliance Industries (RIL), LIC's top equity holding in terms of value, has been one of the biggest contributors in its portfolio. The stock's 25% surge has added ₹26,515 crore in value.

ITC, with LIC as the largest shareholder, has added ₹5,759 crore to its value. At the end of the March 2025 quarter, LIC held 15.52 percent of the fast-moving consumer goods (FMCG) company.

Jio Financial Services (₹2,472 crore), Hindustan Aeronautics (₹2,036 crore), Tata Motors (₹1,750 crore), Tech Mahindra (₹3,267 crore), Adani Ports and Economic Zone (₹5,192 crore), Mahindra & Mahindra (₹5,801 crore), and Bharat Electronics (₹1,268 crore) all made substantial contributions to the increase in share prices. These stocks accounted for 12% of LIC's total value appreciation.

G Chokkalingam, founder and head of research at Equinomics Research, believes that investors' recent focus on large-cap stocks was motivated by a desire for safety in turbulent times. This, he believes, may change soon.

"In the medium term, beyond one or two quarters, the large-cap segment could face pressure.With significant moderation in the US-China trade war and geopolitical tensions easing, investors may choose to allocate more to the small- and midcap segments as risk-on sentiment grows," he said.

Meanwhile, top 10 public sector undertakings (PSUs) contributed ₹14,989 crore to the portfolio value surge. Between April 7 and May 16, the market values of defence sector stocks Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics, and Cochin Shipyard increased by 28 to 52 percent, according to data.

Upside triggers

On a broader level, the rebound in Indian equity markets has been driven by positive signals from the US regarding a potential trade agreement with India, as well as the de-escalation of the geopolitical conflict between India and Pakistan. This brought foreign institutional investors (FIIs) back to Indian shores.

FIIs who were sellers in the first three months of 2025, selling equity worth Rs 1.16 trillion, turned buyers in April, spending Rs 4,243 crore. This shift in FII strategy from selling to buying accelerated in May, with a significant purchase of Rs 27,451 crore through May 16th.

"At 23x one-year forward earnings, Nifty is not inexpensive. Earnings growth has disappointed, and the economy is experiencing a cyclical slowdown. Given that the economy has the potential to accelerate and we may enter an earnings upgrade cycle next year, investment in equities should be approached with caution," according to R Venkataraman, managing director at IIFL Capital.