Markets under pressure: How these large cap laggards have fared over three years and since the Iran conflict started

Size does not guarantee returns. Many large-cap stocks, often considered safe and stable, have delivered negative returns over the last three years. For investors, this highlights the importance of looking beyond index performance and focusing on valuations, earnings growth, and sector trends. While recent geopolitical tensions linked to the Iran–US conflict have added to market volatility, the medium to long-term trend for many such stocks was already weak.

Data from ACE Equity shows that in the BSE Large Cap index, several large and well-known stocks have declined as much as 25%, giving negative returns over the last three years. The pressure has been visible across sectors like IT, automobiles, and FMCG.

Over three years, shares of companies like Tata Consultancy Services (TCS) and Tata Motors Passenger Vehicles have declined around 25% each, with the latest m-cap at Rs 8.54 lakh crore and Rs 1.14 lakh crore, respectively.

Even defensive names such as Hindustan Unilever and ITC have seen their stock prices fall 17% and 21% respectively. Another FMCG stock, Dabur India, has declined (20%), showing that even stable demand-driven sectors faced valuation corrections.

The IT sector has been under consistent pressure. Apart from TCS, stocks like Infosys (-13%) and LTM (-10%) have also delivered negative returns over the same period. This reflects global slowdown and AI-related concerns amid weaker demand from key markets like the US and Europe.

Shares of Asian Paints have fallen 23%. It has a current market cap of Rs 2.1 lakh crore with a stock price of Rs 2,187. Among industrial names, Shree Cement and Siemens have both fallen around 7%, with stock prices at Rs 23,335 and Rs 3,078, respectively.

When we look at performance since the start of the Iran-related conflict in late March 2026, the picture remains largely weak. Most of these stocks have continued to decline. Auto and consumption-linked stocks have been hit harder, with Tata Motors Passenger Vehicles falling nearly 19% in this period. IT and FMCG names such as TCS (-11%) and Hindustan Unilever (-11%) also show declines of over 10%. Followed by Siemens (-10%) and Asian Paints (-8%).

The data suggests that the current market weakness is not only due to recent geopolitical tensions. Many stocks have already been corrected over the past three years due to high valuations, global uncertainty, and sector-specific challenges. The recent conflict has only added to the pressure, increasing volatility and making investors more cautious.