Over half of NSE stocks decline in FY25, smallcaps worst

More than half of the stocks listed on the National Stock Exchange (NSE) with a market capitalization of over Rs 1,000 crore have seen their prices fall in the current financial year, FY25. Smallcap stocks have been the most affected, experiencing significant declines. As FY25 approaches its end with just nine trading sessions left, a review of 1,231 companies shows that over 50% have witnessed a drop in share prices. Many of these stocks have dropped by double digits, with some losing as much as 71%. The ten largest declines are all from smallcap companies, including Spandana Sphoorty Financial and Gensol Engineering, which have fallen between 71% and 58%. Additionally, other notable stocks have also recorded declines of 50% or more. This group includes companies like IndusInd Bank and Adani Green Energy. In the public sector, over two dozen stocks also saw significant declines, with companies such as Coal India and Punjab National Bank included in this list. Adani Group stocks, which usually attract a lot of investor attention, have generally declined as well. Stocks like Adani Enterprises and Ambuja Cements fell between 40% and 21%. Major private companies including Tata Motors and Reliance Industries have also experienced drops of up to 47%. Analysts suggest the worldwide economic environment is uncertain. Concerns about the U.S. economy, international tariffs, and the movement of foreign investors have affected market confidence. In India, weak local market sentiment and underwhelming Q3 earnings have added to the issues. Looking ahead to FY26, some experts expect the financial services and metal sectors to perform better. However, others caution that the market outlook is unpredictable, with no clear trends emerging.