Indian stock markets witnessed a brutal week of selling, with heightened geopolitical risks and fears of fresh US tariffs triggering a broad-based decline. The benchmark Nifty 50 index shed a significant 645 points, or 2.45%, marking its worst weekly performance in over three months. The broader Nifty 500 mirrored this downtrend, falling 2.62%.
Double-Digit Losers: A List of Major Declines
The pain was particularly acute for several constituents of the Nifty 500 index. Seventeen stocks ended the week with double-digit losses, ranging between 10% and 18.5%. This sell-off was driven by a combination of profit-booking after recent rallies, disappointing quarterly results, and a cautious macro environment.
Transformers & Rectifiers emerged as the biggest loser, with its stock price plummeting 18.5% to ₹274.3. The sharp decline followed the company's December quarter results, which failed to meet investor expectations.
Similarly, Elecon Engineering saw intense selling pressure, especially during Friday's session, after its Q3 earnings. The stock slid 16% in a single day, contributing to a weekly loss of 15.5%, closing at ₹423.6.
Premier Energies extended its losing streak to four weeks, falling another 15% to ₹717.45. This pullback has brought the stock down nearly 48% from its all-time high of ₹1,388. After three weeks of gains, Ather Energy also succumbed to profit-booking, ending the week 14.6% lower.
Other Notable Decliners in the Broader Market
The list of significant decliners was extensive, highlighting the widespread nature of the correction. Key stocks that fell between 10% and 13.5% included:
- Jupiter Wagons (-13.2%)
- Mahindra & Mahindra Financial Services (-13.5%)
- Force Motors (-11.8%)
- Waaree Energies (-11.2%)
- Inox Wind (-11.1%)
- NBCC (India) (-11.0%)
- Gujarat Mineral Development Corporation (-11.0%)
- Signatureglobal (-10.6%)
- Schneider Electric Infrastructure (-10.2%)
- Devyani International (-10.1%)
- Trent (-10%)
- IDBI Bank (-10%)
Analysts Advise Caution and Focus on Large Caps
The market mood turned sour quickly in early January, erasing the optimism that followed the Nifty 50's record high of 22,673. The trigger was a combination of escalating geopolitical tensions, renewed warnings from US President Donald Trump about potential tariff hikes on Indian imports, and sustained selling by foreign portfolio investors (FPIs).
Commenting on the volatile environment, Mr. Ajit Mishra, SVP – Research at Religare Broking, advised a disciplined approach. "In the current environment of heightened volatility and global uncertainty, a cautious and disciplined approach is advisable," he stated.
Mishra emphasized that while bargain hunting could lead to short-term rebounds, a sustained recovery would require clarity on earnings, global trade, and FII flows. His key recommendations for investors were:
Focus on capital preservation and maintain higher allocations to quality large-cap stocks.
Avoid aggressive positions in high-beta or leveraged companies.
Traders may look for tactical opportunities but must enforce strict risk management and stop-losses.
Consider selectively investing in domestically driven sectors with strong balance sheets for relative stability, while being wary of export-linked stocks vulnerable to global shocks.
The week's performance underscores how global headwinds and domestic profit-taking can swiftly alter market trajectory, prompting a shift in strategy from aggressive investing to capital protection.
