Over 15 Nifty 500 stocks tumble 10–18% last week; Transformers & Rectifiers hit hard

Transformers & Rectifiers, Elecon Engineering, Premier Energies, and Ather Energy were among 17 Nifty 500 stocks that ended last week with double-digit losses, as heightened geopolitical tensions and warnings of higher tariffs by US President Donald Trump weighed on investor sentiment.

The Nifty 50 ended lower over the past five trading sessions, shedding a cumulative 645 points, or 2.45%, marking its worst weekly decline in more than three months.

Investor confidence in Asia’s third-largest economy took a hit amid fears of fresh US tariffs on Indian imports, escalating geopolitical tensions, and renewed bouts of foreign portfolio investor (FPI) selling, causing local equities to underperform their Asian peers in early January.

Although Indian equities began the year on a firm note, with the Nifty 50 scaling a fresh record high of 26,273, optimism quickly faded following US military action against Venezuela, which intensified geopolitical concerns, and renewed warnings from President Donald Trump about potential tariff hikes on India.

Meanwhile, the broader Nifty 500 also posted a similar decline of 2.62% last week, with 17 stocks in the index falling between 10% and 18%.

Profit booking, weak results drag stocks down by up to 18%

Transformers & Rectifiers emerged as the top laggard, with the stock plunging 18.5% to ₹274.3 apiece. The sharp sell-off followed the release of the company’s December quarter performance, which appeared to dent investor sentiment.

Similarly, Elecon Engineering came under heavy selling pressure during Friday’s session, with the stock sliding 16% after its December quarter results. The decline contributed to a 15.5% fall for the week, with the stock ending at ₹423.6 apiece.

Extending its weekly losing streak to four, Premier Energies shares fell another 15% to ₹717.45 apiece, taking the stock down nearly 48% from its all-time high of ₹1,388. After rising for three consecutive weeks, Ather Energy also saw profit booking, with the stock ending the week down 14.6%.

Jupiter Wagons witnessed renewed selling after a brief pause, dragging the stock lower by 13.2% to ₹293 apiece.

Ending a four-week rally, Force Motors shares crashed 12% to ₹18,710 apiece. Despite the sharp weekly decline, the stock remains up 185% over the past year, 400% in two years, and 1,270% over the past five years.

Other stocks such as Waaree Energies, Mahindra & Mahindra Financial Services, Inox Wind, NBCC (India), Gujarat Mineral Development Corporation, Signature Global, Schneider Electric Infrastructure, Devyani International, Trent, and IDBI Bank declined between 10% and 13.5% during the week.

Volatility is high; focus on capital protection and large caps, says analyst

Mr. Ajit Mishra, SVP – Research, Religare Broking, noted, “In the current environment of heightened volatility and global uncertainty, a cautious and disciplined approach is advisable. While bargain hunting could lead to intermittent rebounds after the sharp correction, sustained upside is likely to remain capped until greater clarity emerges on earnings, global trade developments, and FII flows.”

According to Mishra, “Investors should focus on capital preservation, maintain higher exposure to quality large-cap stocks, and avoid aggressive positions in high-beta or leveraged names. Traders may look to tactically participate in short-term technical rebounds but should adhere to strict risk management and stop-loss discipline.”

Mishra further highlighted that “Selectively positioning in domestically driven sectors with strong balance sheets may offer relative stability, while export- and commodity-linked stocks could remain vulnerable to further global shocks.”

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.