Market Recovery Uneven as Majority of NSE 500 Stocks Trail Behind

While benchmark indices such as the Nifty 50 and Nifty 500 have shown resilience, rebounding to within 5–6% of their September 2024 highs, the broader market tells a different story. An ETIG study reveals that more than 60% of NSE 500 stocks are still trading over 20% below their peaks from earlier in the year.

Significant Declines Across the Board

The analysis highlights stark disparities: 118 stocks are 20–30% off their highs, 83 are 30–40% below, and 113 have plummeted more than 40%. In contrast, the Nifty 500 and Nifty 50 indices are merely 6.1% and 5.3% away from their respective peaks, underscoring a rally driven by select sectors or large-cap names.

Worst Performers and Bright Spots

Stocks like Jaiprakash Power Ventures and Suzlon Energy have suffered declines of 84% to 97% from their all-time highs. Yet, amidst the downturn, Laurus Labs and Torrent Pharmaceuticals stand out, trading above their 2024 highs.

Valuation Concerns and Selective Investment

Experts warn of persistent overvaluation, particularly in small and midcap stocks, with expectations of tempered growth. Investors are advised to focus on reasonably priced largecaps and sectors like banking and financial services for better returns, despite opportunities in infrastructure and power sectors.