LIC Hit Hard by War Jitters: Banks and L&T Lead ₹70,105 Crore Loss

The ongoing US-Iran conflict has significantly impacted the Life Insurance Corporation of India (LIC), leading to a substantial erosion of ₹70,105 crore in its stock portfolio.  

This decline has been primarily driven by losses in banking stocks and Larsen & Toubro (L&T). 

LIC's Portfolio Erosion Amidst Conflict 

As per The ACE Equity report, as of March 9, 2026, LIC's portfolio value stood at ₹14.17 trillion, down from ₹14.88 trillion on February 27, 2026, marking a 4.7% decrease. This decline is attributed to the geopolitical tensions involving the US and Iran, which have adversely affected the stock market. 

Banking Sector and L&T: Major Contributors to Losses 

Banking stocks, including State Bank of India (SBI), ICICI Bank, and HDFC Bank, accounted for 21.8% of LIC's losses, amounting to ₹15,293 crore.  

L&T alone contributed to an 11% dent, equating to a loss of ₹7,609 crore. These figures highlight the significant impact of the conflict on these sectors. 

Broader Market Impact 

The BSE Sensex and the Nifty 50 indices both declined by approximately 4.5% since the onset of the conflict. Mid-cap and small-cap indices experienced even steeper losses, with the Nifty MidCap and Nifty SmallCap indices each slipping around 5% during this period. 

Read More: Insurance Knowledge Gaps: 63% Purchase Within One Hour, 54% Unaware of Principal Loss Risks! 

Top Stocks Affecting LIC's Portfolio 

Among the top stocks impacting LIC's portfolio, SBI, L&T, ICICI Bank, and HDFC Bank were the most significant contributors to the losses.  

Other notable stocks include Hindustan Unilever, Indian Oil Corporation, Tata Steel, Maruti Suzuki India, Mahindra & Mahindra, and Adani Ports and SEZ. 

Conclusion 

The US-Iran conflict has led to a notable decline in LIC's portfolio, with banking stocks and L&T being the primary contributors. The broader market has also experienced significant losses, reflecting the widespread impact of the geopolitical tensions. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.