In just 48 hours, about Rs 72000 crore of market value has been wiped off from a heavyweight stock like ITC, and its biggest impact has been on India’s most trusted investor LIC.

Due to sharp sell off in ITC, the investment value of LIC has decreased by about Rs 10500 crore.

This decline is being considered a big shock for investors. The biggest reason behind this entire sell off is the major change made by the Union Government in the cigarette tax structure, which is going to be implemented from 1 February 2026. Under the new rules, the base GST rate has been increased and new excise duty has also been imposed.

Due to Tobacco being a heavy FMCG stock, ITC is under direct pressure for this policy change.

In this video, the entire impact on stock price and market cap has been explained in simple language.

After the government’s new excise duty on cigarettes, there has been a huge decline in ITC shares in two days. This has had a direct impact on the investment of Life Insurance Corporation of India (LIC). On January 2, ITC shares fell 5 percent to their new 52-week low of Rs 345.25 per share. However, there was some recovery later. ITC shares fell by more than 14 percent in the first two trading sessions of the year 2026 alone.

There was a stir due to the fall of shares

According to the data of shareholding pattern for July-September quarter (FY26), 100 percent stake of ITC is held by public shareholders. It has no promoter or promoter group. LIC alone holds 15.86 percent stake in ITC, while General Insurance Corporation of India (GIC) holds 1.73 percent and The New India Assurance Company Limited holds 1.4 percent.

LIC has suffered a paper loss of Rs 11,468 crore due to the sale of ITC shares. Where at the closing level of December 31, the total value of LIC’s stake in ITC was Rs 80,028 crore. At the same time, now it is at a record low of Rs 68,560 crore.

In this way, due to the sale of ITC shares, Rs 13,740 crore was wiped out from the portfolio of these three government insurance companies in just two days. It is important to note here that this is a notional loss. Unless insurance companies sell shares at the 52-week low level, it will be considered a paper loss only.

ITC loss of Rs 72000 crore

ITC shares fell almost 4 percent on January 2 and closed at Rs 350.10 per share. The stock has fallen more than 13 percent in the last five days and more than 15 percent in the last six months. Due to this, Rs 72,000 crore has been reduced from the market capitalization of the company in two days, which is now approximately Rs 4,38,639 crore. The current P/E ratio of the stock is 22.59.

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LIC Jeevan Shanti Policy: On hearing the name of retirement, the first question that comes to mind is how will the expenses be managed every month. Salary keeps coming during the job, but after retirement, it is most important to have the assurance of regular income. In today’s time, mere savings are not enough, a plan with safe and guaranteed returns is needed. Keeping this thinking in mind, LIC has introduced New Jeevan Shanti Plan. This policy has been made for those people who do not want to worry about money in old age. Invest once and get pension for life after a fixed period of time. This is the biggest strength of this plan.

Great option for these people

LIC New Jeevan Shanti is suitable for those investors who want to stay away from risk. This is a single premium annuity plan, which means there is no need to deposit money every month or every year. You invest a lump sum once and the pension gets fixed at the time of taking the policy. After this, whether the market goes up or down, your pension is not affected. This plan is useful for employed people, business people, people nearing retirement or already retired people. The special thing is that it provides guaranteed lifetime income.

Two pension options are available

In this scheme, LIC gives two pension options to the policyholders. The first option is Deferred Annuity for Single Life. In this, pension is received only by the policyholder and after his death, the entire amount deposited is returned to the nominee. The second option is Deferred Annuity for Joint Life. This can include husband and wife or two close relatives. After the death of one person, the other continues to get pension for his entire life. On the death of both, the invested amount is returned to the nominee.

Necessary conditions for investment

The minimum age for investing in LIC New Jeevan Shanti has been kept at 30 years and maximum at 79 years. This is the reason why this plan becomes beneficial for both youth and senior citizens. In this, the minimum investment starts from Rs 1.5 lakh, while there is no limit on the maximum investment. There is an option to choose the deferment period in the policy from 1 year to 12 years. The longer the waiting period, the higher the pension you will get. Loan facility is also available after 3 months of taking the policy.

You will get Rs 1 lakh annually

The pension received in this plan depends on your age, investment amount and the deferment period chosen. For example, if a person invests a lump sum of Rs 11 lakh at the age of 55 and chooses a deferment period of 5 years. So after completion of the fixed time, he starts getting a guaranteed pension of about Rs 101880 annually. If this pension is taken every month. So the amount comes to approximately Rs 8149.

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LIC GST Demand Notice: Life Insurance Corporation of India (LIC) has received a demand notice for Goods and Services Tax (GST) for the financial year 2021-22 to 2023-24 from the Maharashtra State Tax Department. This includes GST of Rs 1,382.52 crore, interest of Rs 849.56 crore and penalty of Rs 138.25 crore.

The department claims that LIC had claimed excess Input Tax Credit (ITC) during this period. According to the exchange filing, this notice communication was issued by the Deputy Commissioner of State Tax, Chembur, Mumbai and was received by LIC on December 10, 2025.

What did LIC say?

LIC said that an appeal can be filed against this decision before the Commissioner (Appeals) in Mumbai. It also confirmed that although this demand notice will have a financial impact on the company, it will not have any significant impact on its operations or ongoing activities. However, this is not the first time that LIC has received a huge tax notice, in fact LIC has faced this before also.

Notices have been received earlier also

Earlier, the company had received a GST demand notice of Rs 479.88 crore for the financial year 2020-21 and another notice of Rs 600 crore from the Maharashtra state tax authorities. The company has also received a communication/demand order for interest and penalty for Maharashtra from the Deputy Commissioner of State Tax, Mumbai on February 27. The company said that the demand notice is related to misuse of Input Tax Credit (ITC) and less reversals, interest on late payment and less payment of tax liability.

What will be the impact on investors?

Experts believe that this GST demand notice may definitely have an impact on investor sentiments in the short term, but considering its large-scale business, strong balance sheet, stable business model and investors’ trust in it, it can be said that it will not have a long-term impact. On top of that, LIC has also said that it will take legal action against it. Of course, this will raise questions about the company’s reputation, but its financial impact will be limited.

status of shares

So far this year, the share price of Life Insurance Corporation of India (LIC) has fallen by 4.23 percent. On Wednesday also, a decline of 0.23 percent was recorded in its shares. With this it closed at Rs 858.95.

The government is preparing to reduce its stake in Life Insurance Corporation of India (LIC) to 6.5 percent by the end of the year. It is being told that the government can sell stake worth Rs 8,800 crore to Rs 13,200 crore. Quoting sources, the Economic Times report said that the purpose of taking this step is to increase public shareholding in the company as per the rules of market regulator SEBI.

Why is the government selling its stake?

The government will have to sell 6.5 percent more stake in LIC by May 16, 2027. According to SEBI rules, at least 10 percent stake in any listed company should be with the public. Whereas after listing, the public holds only 3.5 percent stake in LIC. Whereas the government has 96.5 percent stake in LIC, hence the government will have to sell 6.5 percent more of its stake within the stipulated time. It will be sold in several batches so that the share price is not affected much and the existing shareholders do not suffer loss.

Impact visible on shares

The impact of this news was seen in LIC shares on Wednesday. It opened at Rs 901. During trading, it was trading at Rs 915, up almost 2 percent. Investors also looked positive about this because by selling stake, liquidity in the market can improve and the ownership rights of LIC can also be divided among many other people.

However, despite the positive response from the market, LIC shares remain below its IPO price of Rs 949. On Tuesday, it closed at Rs 900.70. LIC has got time till May 2032 to increase public shareholding to 25 percent. Don’t worry about the government selling its stake in LIC because it will have no impact on your policy, bonus or claims.

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If you are a retail investor, then LIC’s investment strategy can become an inspiration for you. Being India’s largest institutional investor, LIC’s steps provide important clues in understanding the mood and direction of the market. Recently, LIC has increased its stake in two big FMCG companies of the country — Tata Consumer Products and Dabur India. According to Exchange Filing, on October 24, LIC has increased its stake in Tata Consumer from 6.633% to 8.645%, i.e. an increase of about 2%. This purchase has been done from the secondary market, not from any new share issue. Shares of Tata Consumer have given 3% returns in the last one month and 18% returns in the last one year — which is a better performance than the market average. At the same time, LIC’s stake in Dabur India has increased from 4.918% to 6.985%. That means an increase of about 2.07% and 3.66 crore additional shares were purchased. However, Dabur has given 1.5% return in the last one month and -8% return in one year. It is clear from these investments that LIC’s focus is on Long-Term, Stable and Defensive Growth Sectors. The FMCG sector maintains stable demand in both recession and boom, which makes it a reliable investment.

The Washington Post report claimed that Indian officials had prepared a proposal in May 2025 under which a plan was being made to transfer approximately $3.9 billion of investment of government insurance company LIC to Adani Group companies. However, LIC has strongly refuted this report on October 25 calling it completely false and misleading. LIC said in its statement that this news seems to have been published with the aim of influencing their decision making process and damaging their reputation. The company clarified that any investment decisions are taken only after board-approved policies and detailed due diligence, and any external pressure has no role in it. The report also said that LIC had invested $570 million in Adani Ports & SEZ in May 2025, while international surveillance on Adani Group was going on at that time. But LIC pointed out that its portfolio is diversified and its exposure to Adani Group is only less than 2% of the total loans. Both LIC and Adani have completely rejected these allegations, which has brought relief to investors. Now all eyes will be on the Stock Market Reaction of Monday (27 October).

SIP or LIC Policy: Investment has become very important for people in today’s times. Because when you suddenly need money, the money invested by you comes in handy. If you have Rs 50000 and you are confused about where to invest it.

You are feeling that you should do an annual SIP of Rs 50,000 or take a LIC policy of Rs 50,000. If you are not able to understand which of these two is more beneficial for you, then let us tell you which investment will be right for you.

Benefits of SIP of Rs 50000 annually

If you invest Rs 50000 in SIP every year. So this can make big money in the long run. If we look at the average return of 12-15%, your investment can reach around Rs 10 lakh in 10 years. The advantage of SIP is that it balances market fluctuations and increases earnings through compounding. Tax saving ELSS funds are also available in this. So you can also withdraw your investment if needed. It gives both flexibility and growth. That’s why nowadays people are investing a lot of money in it.

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Benefits of LIC policy of Rs 50000

Investing in LIC is a reliable investment. Investment here means saving with security. Here your money remains safe and you also get set returns. You also get insurance coverage on an annual policy of Rs 50,000, which provides financial help to the family in case of any untoward incident.

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The returns may be between 5-7% but it includes both tax benefits and trust. This is suitable for those who do not like market risk and want to grow their savings in a stable manner. In the long run, it becomes a means of stable and safe investment.

Which investment is more beneficial for you?

If your goal is to increase your wealth rapidly and take advantage of market growth. So SIP is a better option. It provides both flexibility and higher returns. But if your priority is security and assured returns. So LIC policy will be correct. Therefore, you should first know for how long you have to invest and what is the goal of your investment. Take decision accordingly. Both SIP and LIC policy are good options for investment.

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Tata capital ipo: Tata Group’s NBFC company Tata Capital has raised Rs 4642 crore from anchor investors, with the Life Insurance Company (LIC) the largest bet of Rs 700 crore, which is 15.08 percent of the anchor book. LIC was allotted 2,14,72,386 shares.

According to the company’s filing, other investors include Nomura India Investment Fund Mother Fund (3.77 percent), Nomura India Investment Fund Mother Fund (3.77 percent) and Morgan Stanley Investment Funds Asia Opertunity Fund (3.15 %). Apart from this, Rs 125 crore has been allotted to Norway’s Wealth Fund, Government Pension Fund Global Rs. 2.69 percent equity. The stocks were allotted on the upper price band of Rs 310-326 per share.

Who are an anchor investors?

Anchor investors usually include an institution, mutual funds or pension funds. They are also called qualified Institutional Boys (QIB). There are many advantages of the involvement of anchor investors in the IPO, this increases the trust of investors. Since the opening of the IPO, a large fund is obtained before the opening of the IPO, other investors are also encouraged to invest. This increases stability, helps in setting a price band for stock, which leads to a good price.

Which companies participated in the anchor book?

Anchor book included investors like SBI Life Insurance, SBI General Insurance, HDFC Life Insurance, Aditya Birla Sun Life Insurance, ICICI Londbard General Insurance, Bharti AcS Life Insurance, Kenra HSBC Life Insurance, Navi General Insurance and Reliance General Insurance.

Apart from these, ICICI Prudential MF, HDFC AMC, Aditya Birla Sun Life AMC, DSP MF, Axis Mutual Fund, Whiteok Capital, Nippon Life, Mahindra Manulif,, Edelweiss, Kotak Mahindra AMC, Motilal Oswal AMC, UTI AMC, Bandhan MF, Barbas MF, Invesco India, Mirray Asset and PGIM India 18 domestic mutual fund houses together bought 5.06 crore shares of Tata Capital for Rs 1,650.4 crore.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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The 56th meeting of the GST Council will be held today and tomorrow under the chairmanship of the Finance Minister, in which large GST reforms can be announced. After Prime Minister Modi’s August 15 address, the meeting is expected to remove two GST slabs and cut rates. Reduce GST on FMCG and electronics products will directly benefit the general public, which will reduce their pockets and increase demand in the market. The Auto sector which is already struggling with weak demand is also likely to get relief. Currently, cars have 28% GST and Cess, which can be reduced to 18% – this will reduce prices and increase sales in the festive season. Stocks like Hul, Dabur India, Tata Consumer will be monitored in the FMCG sector, as there is talk of bringing milk powder, hair oil, cooking oil and ready to eat products into 5% slab. At the same time, insurance companies like LIC, HDFC Life, SBI Life, Bajaj Finserv are also on radar. Are you thinking of investing in these stocks? Tell me in the comment!