Market slump deepens: Half of Nifty 500 stocks sink 30-68% from 1-year peaks. Do you own any?

The pain in the Indian stock market is deepening with each passing day as a wave of broad-based selling has pushed stocks to multi-month lows, leading to significant wealth erosion for retail investors. From large-cap and small-cap to new-age tech stocks, the recent selloff has spared no segment, leaving investors struggling to find safe bets amid mounting economic and geopolitical uncertainties. 

Both domestic and global factors continue to weigh on investor sentiment. On the domestic front, weaker-than-expected Q3 numbers, stretched valuations, and a slowing economy are rattling investor confidence.

While domestic macroeconomic concerns continue to weigh on sentiment, Donald Trump’s tariff announcements have exacerbated investor concerns, fueling fears of an imminent global trade war as affected nations explore retaliatory measures.

Since assuming office last month, Donald Trump has been announcing tariffs on U.S. imports. Analysts believe his strategy is to use tariff threats as a negotiation tool to secure reductions in tariffs on U.S. exports.

On Monday, Trump said sweeping U.S. tariffs on imports from Canada and Mexico “will go forward” when a month-long delay on their implementation expires next week. Further, he issued a memorandum directing a key government committee to curb Chinese investments in tech, energy, and other strategic American sectors, according to recent media reports.

Investors are further worried about the impact of reciprocal tariffs on India and its domestic currency, which analysts believe could lead to increased capital outflows from Asia’s third-largest economy. FPIs have already pulled out ₹1.28 lakh crore from Indian exchanges in under two months of 2025, sending the Nifty 50 and Sensex to eight-month lows.

As markets have remained in bear territory for the past five months, analysts still believe that valuations in many sectors remain stretched, contributing to a more sustained selloff.

According to analysts, the country’s macroeconomic position has deteriorated somewhat in the past few months, with a continued slowdown in consumption demand (especially for basic staple items), reflecting income and inflation challenges for low-income households.

There is also a likely slowdown in government capex (one of the key drivers of the economy until recently) and increased pressure on the external position, as indicated by a low balance of payments (BoP) surplus, a sharp decline in FX reserves, and a weakening rupee (INR).

For the quarter ending in December, India Inc. reported another moderate performance, posting single-digit growth for the third consecutive quarter.

50% of Nifty 500 stocks now at discounts of up to 68%

As stocks continue to slide in a sustained sell-off, searching for a floor for reversal, the majority are now trading at steep discounts. According to Trendlyne data, 250 constituents of the Nifty 500 index are currently down between 30% and 68% from their one-year peaks.

Sterling and Wilson Renewable Energy has emerged as the worst performer among Nifty 500 stocks, remaining in negative territory over the last nine months, losing 62% of its value. From its one-year high of ₹828 per share, the stock is now down 68.13%.

Network18 Media & Investments ranked second on the list, declining 63% from its one-year high, while maintaining a bearish streak for the seventh consecutive month in February. Meanwhile, Chennai Petroleum Corporation tumbled another 8.18% in February so far, following a 13.5% drop in January.

At current levels, the stock is trading 61% lower than its one-year peak of ₹1,275. Other stocks, such as Whirlpool of India, Adani Green Energy, Raymond, Titagarh Rail Systems, MMTC, Honasa Consumer, and Shipping Corporation, are among 47 stocks currently trading with losses between 50% and 61%, highlighting the intensifying pain in the Indian stock market.

Tariff uncertainty will continue to weigh on markets: Experts

Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “The market is oversold, largecap valuations are fair and short positions in the market are high. This warrants a bounce back, particularly if a short covering happens. But the real issue is the relentless FII selling in the cash market, which has touched 43200 crores in February so far. Since cash market selling and shorting in the derivatives market have been profitable for FIIs, they might continue to sell and try to profit from the negative momentum in the market. It is the sustained DII buying that is preventing the market from a capitulation.”

“Trump’s tariff uncertainty will continue to weigh on markets. Domestically, we need indications of a growth and earnings recovery in India. Investors should stay with quality stocks, which will bounce back when the inevitable recovery happens. Patience is the key,” he added.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.