Life Insurance Corporation of India’s (LIC) share price has extended its recent decline, with the stock now registering a “death cross” on its daily chart as it trades below key moving averages used by technical analysts.
LIC shares are lower for a second consecutive month, down nearly 1% so far this month after falling about 6% in December, based on recent market data cited by the Business Standard. On the daily chart, the stock has formed a death cross, a technical pattern that occurs when the short-term moving average moves below the long-term moving average. LIC’s 50-day moving average (50-DMA) is currently at ₹879.19, slightly below the 200-day moving average (200-DMA) at ₹880.33. The configuration points to weaker recent price performance relative to the longer-term trend.
This is the first death cross in more than six months for LIC. The previous opposite pattern, a “golden cross” in which the 50-DMA rose above the 200-DMA, was recorded on June 27, 2025. The stock has been trading under its 200-DMA since Dec. 8, 2025, a level widely followed in equity markets as a reference for the prevailing long-term direction. Other short-term indicators are also negative. LIC’s stock has been below the supertrend line on the daily chart since Dec. 3, 2025, indicating that shorter-term momentum has remained weak.
On the weekly timeframe, the signals are more mixed. LIC’s stock has been consolidating around its 50-week moving average (50-WMA) since May 2025, without a clear longer-term breakout in either direction. The 50-WMA is around ₹862.16, while the weekly supertrend line stands near ₹815.15. The stock has held above this weekly supertrend level since a breakout in May 2025. For institutional investors and analysts, these levels serve as reference points for evaluating the stock’s longer-term technical structure alongside the more recent deterioration on the daily chart.
The technical backdrop comes alongside expectations of a possible government divestment. The Indian government currently holds about 96.5% of LIC’s equity and is reported to be considering a sale of around 6.5% in two tranches. According to those reports, the first tranche may take place before the end of the 2025–26 financial year. For insurance-focused investors in Asia, a structured sell-down of this size could have implications for market liquidity, index representation, and portfolio positioning in India’s financial sector.
Separately, LIC has launched a Special Revival Campaign for lapsed individual policies, running from Jan. 1 to March 2, 2026. The campaign applies to non-linked individual insurance plans that are eligible for revival under existing policy terms. Under the initiative, policies that are in a lapsed condition during the premium-paying term and have not yet completed the policy term may be revived within five years from the date of the first unpaid premium, subject to the policy’s conditions. There are no concessions on medical or health requirements.
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The campaign includes concessions on late fees for non-linked plans. LIC is offering a 30% concession on late fees, subject to caps that vary by total receivable premium at the time of revival:
For microinsurance plans, the late fee concession is 100%, with standard terms and conditions applying. LIC said the campaign is intended for policyholders who were unable to pay premiums “due to any unfavourable circumstances.” The corporation stated that policies must be kept in force “to get full insurance benefit” and added that “it is always advisable to revive an old policy and restore insurance cover.” According to LIC, “this campaign provides a good opportunity for LIC’s policyholders to revive their policies and ensure financial security for their loved ones.”
