₹31 trn wiped out; nearly 40% of Nifty stocks down over 20% from 52-wk high

The correction in some of India’s largest companies has deepened, with 18 of the 50 Nifty stocks trading more than 20 per cent below their respective 52-week highs. Moreover, the fall in these 18 stocks has resulted in a combined ₹31.35 trillion erosion in market capitalisation.
Notably, when a stock falls by 20 per cent or more, it is technically said to enter a bear grip. Data compiled by BS research shows that the Nifty 50 itself stood at 23,140.5, against its 52-week high of 26,373.2, recorded on January 5, 2026. Among the 18 stocks down more than 20 per cent from their 52-week highs, Infosys has seen the steepest decline at 42.1 per cent, followed by Wipro at 39.9 per cent, Tata Consultancy Services at 37.9 per cent, ITC at 36.9 per cent, Tata Motors Passenger Vehicles at 35.1 per cent and HDFC Life Insurance at 32.7 per cent.

However, a caveat applies to Tata Motors Passenger Vehicles, as the stock’s decline from its 52-week high comes amid the earlier demerger of Tata Motors' businesses (function(){function e(){window.addEventListener('message',function(e){if(e.data['datawrapper-height']!==void 0){var t=document.querySelectorAll('iframe');for(var n in e.data['datawrapper-height'])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data['datawrapper-height'][n]+'px';i.style.height=a}}})}e()})(); Santosh Meena, Head of Research at Swastika Investmart Ltd, said the correction represented a significant valuation reset.
He noted that many of these stocks had run up sharply in prior years and were trading at elevated multiples. “The broader Nifty itself is down 10–12 per cent from its highs, reflecting a combination of profit-booking, higher global yields, elevated crude, and sector-specific headwinds.

This has forced a reset in valuations, particularly in high-weight IT and banking names that had become expensive relative to near-term growth prospects,” he said Other major laggards include Maruti Suzuki India, down 30.5 per cent; HCL Technologies, down 29.3 per cent; Jio Financial Services, down 28.4 per cent; HDFC Bank, down 27.9 per cent; Hindustan Unilever, down 26 per cent; Reliance Industries, down 23.9 per cent; Tata Consumer Products, down 23.3 per cent; Oil & Natural Gas Corporation, down 23.3 per cent; Trent, down 21.5 per cent; NTPC, down 21.2 per cent; Mahindra & Mahindra, down 21 per cent; and State Bank of India, down 20.4 per cent.
The market-capitalisation impact is particularly large among the index heavyweights. Reliance Industries has seen its market capitalisation fall from ₹21.35 lakh crore at its 52-week high to ₹16.59 lakh crore currently, a decline of about ₹4.76 lakh crore.

Several of the stocks that have fallen more than 20 per cent from their 52-week highs are among the country’s largest companies by market capitalisation However, Prathamesh Kadival, research analyst at Bonanza, said the same group of companies continues to have underlying financial strengths.
“Blue chip firms' stock prices are reducing, but they have strong earnings, low debt and steady cash flows, so the fall looks driven by sentiment rather than fundamentals,” he said. Kadival explained that upside for these stocks will usually begin when valuations turn attractive, and FII selling reduces.

Rising domestic inflows, improving quarterly results and stable interest rates often signal that the reversal is approaching. Among the stocks that are worst hit are IT and banking stocks; on this, Meena added that IT is struggling due to persistent concerns over AI-driven disruption to traditional application development/maintenance revenues.
Meanwhile, for banking/financials stocks, he added that there is recent regulatory overhang from proposed insurance commission/expense reforms, higher global yields and crude, FII outflows, and some margin pressure from funding costs. “Banks carry high index weight, amplifying the impact,” he added.

Kadival noted that “IT stayed the clear weak spot as global clients delayed tech spending and the rupee held firm. Money kept rotating out of IT and into financials, and that gap widened the correction.” On the road to recovery, Meena noted that, many of the lagging names remain fundamentally strong with solid balance sheets and long-term earnings power.
The sell-off looks overdone in parts of the market, especially where valuations have compressed meaningfully while business quality is intact. “Recovery is more likely once global yields stabilise, crude cools, FII flows turn consistently positive, and sector-specific clarity emerges,” he said.

Source:Business Standard

₹31 trn wiped out; nearly 40% of Nifty stocks down over 20% from 52-wk high

Never Miss an IPO Alert or Market Update