The last six months have been a rollercoaster for Indian equities, and not everyone has enjoyed the ride. While benchmark indices like Nifty 50 have remained relatively resilient, several heavyweight constituents have seen their valuations erode dramatically. From auto giants to financial services players, some stocks have nosedived by as much as 50.68%, triggering concerns among investors and analysts alike.
Let’s take a closer look at the five worst-performing stocks in the Nifty 50 index, analyzing what went wrong and whether there’s any silver lining for the future.
Current Price: ₹684
6-Month Performance: -50.68%
2. Jio Financial Services – Down 35.67%
Current Price: ₹222.55
6-Month Performance: -35.67%
Despite the hype surrounding its spin-off from Reliance Industries, Jio Financial Services hasn’t quite lived up to the expectations. The stock has tumbled nearly 36%, primarily due to a lack of clear direction and revenue visibility in its initial quarters. Investors were expecting aggressive growth or strategic announcements, but the absence of major deals or partnerships has kept the stock under pressure.
Fig: Nifty 50 stocks 6 months returns. (Source: Trade Brains Portal)
3. Hero MotoCorp – Down 35.38%
Current Price: ₹3,659.2
6-Month Performance: -35.38%
India’s largest two-wheeler manufacturer, Hero MotoCorp, has seen its stock underperform due to a combination of weak rural demand, rising input costs, and stiff EV competition. Despite efforts to foray into the electric vehicle space, the transition has been slower than expected. With competitors like Ola Electric and Ather Energy gaining traction, Hero is under pressure to innovate faster.
4. Bajaj Auto – Down 34.91%
Current Price: ₹7,685.1
6-Month Performance: -34.91%
5. Tata Motors – Down 34.05%
Current Price: ₹613.8
6-Month Performance: -34.05%
Rounding out the list is Tata Motors, which has slipped over 34% despite a relatively strong domestic performance. The drag has largely come from its UK-based subsidiary, Jaguar Land Rover (JLR), which has faced production challenges, slowing global demand, and uncertainties around EV transition in international markets. Supply chain disruptions and global inflation have also weighed on profitability.
Global Headwinds Amplifying the Pain
The broader backdrop of rising interest rates, global inflation concerns, and geopolitical tensions has only added fuel to the fire. The ongoing trade war and protectionist policies, including tariffs introduced by the U.S. under Trump’s influence, have created ripple effects across global markets, including India.
Investors are increasingly seeking safe havens and shifting away from sectors perceived as risky or overvalued. The result? A sharp correction in stocks that were once market favorites.
Looking Ahead
While these stocks have taken a hit, long-term investors might view this correction as a potential buying opportunity, provided the companies show signs of recovery in fundamentals. However, caution is advised, especially with continued volatility expected in the near term.