Business

IIE DIGITAL DESK : Life Insurance Corporation of India (LIC) and Hindustan Aeronautics Limited (HAL) are among 10 major listed companies that recorded the sharpest decline in government shareholding during the March quarter (Q4), according to latest market data and shareholding pattern analysis.

The data shows that the government’s holding value in several key public sector undertakings (PSUs) declined significantly in Q4 FY26, reflecting a combination of market value fluctuations, divestment activity, and changes in equity valuations across sectors such as banking, energy, infrastructure, and defence.

LIC recorded one of the steepest declines, with the government’s holding value falling sharply during the quarter, driven by a drop in stock price and changes in overall valuation. Similarly, HAL also witnessed a notable reduction in government holding value, alongside other large PSUs including Indian Oil Corporation, Bharat Petroleum, and several major banks.

The broader list includes companies across multiple sectors, such as Indian Railway Finance Corporation (IRFC), State Bank of India (SBI), Bank of Baroda, Punjab National Bank, and Rail Vikas Nigam, all of which saw declines in government holding value during the quarter.

Market analysts point out that while these changes do not necessarily indicate full divestment, they reflect a mix of valuation impact due to stock price movements and periodic portfolio adjustments by the government. In some cases, profit booking and strategic rebalancing of PSU exposure may also contribute to the decline.

The PSU segment has remained highly volatile in recent months, with banking and energy stocks witnessing sharp swings amid global macroeconomic uncertainty, interest rate expectations, and domestic policy shifts.

Despite the decline in government holding value in several companies, experts note that PSUs continue to remain a key pillar of India’s market structure, with strong state backing and long-term strategic importance in core sectors like energy security, infrastructure development, and financial services.