The Indian stock market has experienced a significant downturn, with the Nifty 50 index retreating 5.5% from its all-time high of 26,277.35. However, a recent report from SAMCO Securities reveals that the broader market has faced even steeper declines, painting a more sobering picture for retail investors.

Widespread Losses Across Listed Stocks

According to SAMCO Securities' analysis of 750 top listed stocks:

• 485 stocks (64.7%) posted negative returns
• 245 stocks (32.7%) managed to deliver gains
• The median return across all stocks was -11.56%
• The average return stood at -6.25%

These figures underscore a market environment where losses were more prevalent and severe than the Nifty 50's performance might suggest.

Significant Value Erosion

The report highlights the extent of value destruction in the market:

• 254 stocks (33.9%) lost over 20% of their value
• In contrast, 103 stocks (13.7%) gained more than 20%

This disparity indicates a challenging period for investors, with a substantial portion of the market experiencing deep declines.

Underperformance of Broader Indices

The pain extended beyond large-cap stocks, with broader market indices showing even greater weakness:

• Midcap, smallcap, and microcap indices underperformed the Nifty
• These indices saw declines in the range of 8-9%

Impact on Retail Portfolios

SAMCO Securities noted that retail investors, who typically have broader market exposure, likely faced significantly deeper losses than the headline Nifty 50 index performance would indicate. This observation suggests that many individual investors may have experienced portfolio declines well into double-digit percentages.

Market Implications

The divergence between the Nifty 50's performance and the broader market underscores the importance of diversification and careful stock selection. It also highlights the potential risks associated with investments in smaller companies during market downturns.

As the Indian stock market navigates these challenging conditions, investors may need to reassess their strategies and risk management approaches to better weather such widespread market declines.

Indian stock markets continued their downward trajectory for the fifth consecutive session, with the benchmark indices closing in the red amid persistent foreign institutional investor (FII) selling and worries over proposed changes to US visa regulations.

Market Performance

The Sensex tumbled 555.95 points (0.68%) to close at 81,159.68, while the Nifty 50 shed 166.05 points (0.66%), ending the day at 24,890.85. This decline pushed the Nifty below the psychologically important 25,000 mark, reflecting growing investor concerns.

Key Factors Driving the Decline

1. FII Selling Pressure: Foreign institutional investors offloaded nearly ₹9,000 crore worth of Indian shares during the week, contributing significantly to the market's weakness.

2. US H-1B Visa Concerns: Proposed hikes in US H-1B visa fees, potentially reaching $100,000, have raised alarms, particularly impacting the IT sector.

Sector-wise Impact

The IT sector bore the brunt of the selling pressure, with the Nifty IT index plummeting over 6% for the week. Major IT companies traded in negative territory:

• Infosys
• Tata Consultancy Services (TCS)
• Wipro
• HCL Technologies

Top Losers and Gainers

Losers

Gainers

• Bharat Electronics Limited emerged as the top gainer, rising by 2.07%

Market Volatility

The India VIX, often referred to as the fear gauge, surged nearly 9% over the past five sessions, indicating increased market nervousness and uncertainty.

Currency and Commodities

• The Indian rupee traded marginally higher at 88.67 against the US dollar.
• Gold continued its bullish trend, gaining ₹600 to reach ₹113,145 on the Multi Commodity Exchange (MCX).

As global factors and domestic concerns continue to weigh on investor sentiment, market participants will be closely watching for any signs of stabilization in the coming sessions.