Exactly a year ago, the Nifty 50 was at an all-time high. Since then, the index has slipped about 5.5 percent. But the broader picture has been far more painful for investors. Out of the top 750 listed stocks, only 245 have delivered positive returns, while as many as 485 are in the red, wrote Samco Securities.
Apurva Sheth, Head of Market Perspectives and Research at Samco Securities, said the median return stands at negative 11.56 percent and the average at negative 6.25 percent, underscoring that losses are much deeper than the Nifty’s mild decline suggests.
The damage has been particularly severe in the wider market. As many as 254 stocks have shed more than 20 percent of their value, while just 103 stocks managed to gain more than 20 percent. Midcap, smallcap, and microcap indices have all lagged the Nifty, each down around 8 to 9 percent over the past year.
“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 capshas faced double-digit losses,” Sheth explained. He added that diversifying further into equities has not offered protection, and only non-correlated assets like gold, silver, or bonds can provide a buffer during such phases.
The past year has been marked by global shocks, from US President Donald Trump’s tariff barrage including steep duties of 25 percent and penalty tariffs of another 25 percent for purchasing Russian energy to the latest blow of fresh pharma tariffs. Adding to the pressure, the IT sector is grappling with higher H-1B visa fees in the US when already sluggish discretionary spends remained a challenge.
Back home, India Inc’s earnings growth have already slowed sharply. June-quarter net profit grew just 5.3 percent, the weakest in nine quarters, while operating profit rose 7.1 percent, a two-quarter low. Revenue growth for BSE MidCap firms eased to 10.9 percent, the slowest in three quarters, while net profit rose 5 percent. BSE SmallCap companies reported revenue growth of 7.6 percent and net profit growth of 6 percent, both multi-quarter lows.
Looking ahead, GST rationalisation and income tax cuts are expected to provide relief, with analysts forecasting earnings momentum to recover in the second half of FY26. Radha Raman Agarwal, MD and CEO at Swyom Advisors, said Q3 and Q4 should see sales and margins expand, helping India Inc close the year with double-digit growth.
On the policy front, the US Federal Reserve’s rate cuts have already boosted global liquidity, while the Reserve Bank of India is expected to follow with a 25-basis point cut this week. Together, these positives may cushion some of the ongoing gloom. But the challenge for investors remains: navigating a market where the headline index which is filled with more losers than winners.
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