IT fall impact: LIC's investment in IT stocks declines by Rs 42,500 crore in two months

IT fall impact: LIC's investment in IT stocks declines by Rs 42,500 crore in two months

• LIC's IT stock investments fell by Rs 42,500 crore in two months
• Infosys and TCS saw the largest value erosion for LIC
• Nifty IT index dropped 21% in February amid AI disruption fears

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Life Insurance Corporation of India's investment in IT stocks declined by Rs 42,500 crore in two months as the stocks got battered in 2026 primarily due to fears over artificial intelligence disruption.

LIC saw maximum value erosion in Infosys and Tata Consultancy Services where it lost Rs 26,510 crore.

As of December 31, 2025, LIC's equity portfolio stood at Rs 17.83 lakh crore, showed exchange data.

12.43% of its equity portfolio (Rs 2.17 lakh crore) was allocated to IT.

LIC has 26.52% (Rs 4.64 lakh crore) of its portfolio exposed to financial stocks.

The Nifty IT index extended its losses for the fifth consecutive session on February 24, slipping to a multi-month low and eroding nearly 21% so far this month. The recent decline has been largely driven by concerns over AI-led disruptions, particularly following the launch of Anthropic’s new Claude AI security tool, which has added to uncertainty around the sector’s earnings outlook.

On February 24, Nifty IT index fell 5%, taking its monthly losses to 21%, the biggest decline seen by the sectoral index since 2008.

CNBC-TV18 reported that mutual funds' losses in IT were to the tune of Rs 3.5 lakh crore in 2026 so far. Their losses in Infosys and TCS were nearly Rs 2 lakh crore.

LTI Mindtree, Tech Mahindra, Persistent Systems shares fell 6-6.5% on February 24, followed by HCL Tech and Coforge, which declined 5.8% and 5.2%, respectively.

"We now expect 14%-16% gross deflationary risk from AI over the next few years to the overall (IT) sector revenues," said analysts led by Yogesh Aggarwal of HSBC Global Investment Research.