One year since Nifty's record high: IndusInd, Trent to TCS — top stocks behind the 6% fall in index

Indian benchmark indices, once hailed as the strongest growth story among emerging markets, have lost steam since September 2024. The Sensex and Nifty 50 are down 6.45 per cent and 6.17 per cent, respectively, from their record highs of 85,978.25 and 26,277.35 touched on September 27, 2024.

This marked a sharp pause after a four-year bull run that saw the Nifty 50 climb more than 3.5 times from its March 2020 lows.

Global and domestic headwinds weigh heavily

The reversal in Indian equities has been driven by both global and local factors. Foreign institutional investors (FIIs) have turned aggressive sellers since October 2024, withdrawing a record ₹2,42,400 crore—the steepest bout of FII selling on record, according to NSDL data.

Elevated valuations, tighter regulations on derivatives trading, and lacklustre corporate earnings have further dented investor sentiment.

Globally, the US decision to impose steep tariffs on Indian exports has clouded prospects for key sectors. Ongoing geopolitical tensions, including the Russia-Ukraine war and the Israel-Hamas conflict, have only heightened risk aversion towards emerging markets, eroding the momentum that previously buoyed Indian equities.

Stocks crash across the board

Out of the top 750 listed stocks, only 245 have delivered positive returns, while 485 are in the red. The median return stands at -11.56 per cent and the average at -6.25 per cent, signalling that market pain runs far deeper than index-level declines suggest.

The broader market has seen steeper losses. Around 254 stocks have lost over 20 per cent of their value in the past year, compared to only 103 stocks managing gains of more than 20 per cent. Midcap, smallcap, and microcap indices have all underperformed the Nifty, recording falls of 8 per cent to 9 per cent.

Among Nifty 50 constituents, IndusInd Bank was the top dragger, erasing over half of its investor wealth. Trent fell 40 per cent, while TCS, Tata Motors, and Bajaj Auto each shed more than 30 per cent.

The Nifty 500 index showed similar weakness, with Sterling & Wilson Renewable Energy plunging over 63 per cent, and companies like Praj Industries, HFCL, Tejas Networks, and Raymond Lifestyle all losing more than 50 per cent. Out of 500, 333 stocks were in the red, while just 167 delivered positive returns.

In the midcap space, Sona BLW dropped 45 per cent, and Colgate-Palmolive fell more than 41 per cent. Stocks such as Indian Overseas Bank, Godrej Properties, IRB Infrastructure, Tata Elxsi, Torrent Power, SJVN, Aditya Birla Fashion, Astral, Rail Vikas Nigam, Kalyan Jewellers, Tata Technologies, Indian Renewable Energy, and Suzlon Energy also saw declines of over 30 per cent.

Market strategy: What should investors do?

Market experts caution that index-level numbers don’t always reveal the true extent of pain faced by retail investors. As Apurva Sheth, Head of Market Perspectives and Research, SAMCO Securities, explained: "This data underscores a key truth: headline indices often mask the underlying breadth of the market. While the Nifty may look like it’s holding ground, the average investor—who typically owns mid and small caps—has faced double-digit losses. The lesson is clear: relying on index-level performance can be misleading."

Sheth further warned against chasing too much equity exposure: "Mindless diversification into more stocks or equity mutual funds doesn’t help. Unless you buy non-correlated assets like gold, silver, and bonds, your portfolio will bleed and go through these painful periods."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.