India's stock market volatility since last Diwali saw 60 stocks lose up to 96%

The volatile nature of India's broader market over the past one year has wiped out more than half the value of at least 63 stocks since last Diwali, with several companies losing as much as 60-95% of their share prices, according to an analysis of market data.

The selloff has hit companies across sectors, including renewable energy, infrastructure, consumer businesses, technology and financial services. Even prominent names such as Swiggy, KPIT Technologies, Kaynes Technology, Inox Wind and Reliance Power have seen their shares decline by more than 50%. The analysis covers companies with a market cap of at least Rs 1,000 crore.

Elitecon International emerged as the worst performer on the list, with its shares plunging 96%, while Reliance Infrastructure lost 79.14% during the period. Kothari Industrial Corporation and Fischer Medical Ventures also recorded sharp declines of 76.55% and 75.19%, respectively.


Rajesh Exports, BN Agrochem, Oswal Pumps and Allcargo Logistics were among the other major losers, with declines ranging from 71% to 73%.

The scale of the correction highlights the pressure on individual stocks despite periodic recoveries in benchmark indices.

India's equity markets have been weighed down by sustained foreign investor selling, rising crude oil prices, geopolitical tensions in West Asia and concerns over expensive valuations. The weakness has been especially pronounced in smaller companies, many of which had enjoyed substantial gains during the previous market rally.

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Ravi Singh, chief research officer at Master Capital Services, attributed the broader market weakness to foreign institutional investor selling, higher crude oil prices, inflation concerns and expensive valuations.

"Despite the sharp decline, many stocks remain expensive relative to earnings, suggesting continued volatility and selective buying rather than an immediate broad-based recovery," Singh said. The correction has affected several stocks that were previously popular among retail investors.

Shares of food delivery company Swiggy declined 59%, while Brainbees Solutions, which operates the FirstCry brand, dropped 55.83%, while Awfis Space Solutions lost 60.74%.

In the technology sector, KPIT Technologies fell 53.9% from Rs 1,152.50 to Rs 531.35, while Kaynes Technology India declined 53.22% from Rs 6,868.55 to Rs 3,213. MapmyIndia parent CE Info Systems lost 54.3%, while Latent View Analytics and Aurionpro Solutions recorded declines of 53.13% and 54.02%, respectively.

Renewable energy stocks also faced heavy selling. Vikram Solar declined 60.57%, Inox Wind fell 60%, and KP Energy lost 61.92%. Shakti Pumps dropped 56.12%, while Inox Green Energy Services and Insolation Energy fell 55.71% and 58.52%, respectively.

Infrastructure and engineering companies were similarly affected. KEC International lost 59.16%, H.G. Infra Engineering declined 57.74%, PNC Infratech fell 54.64%, and Afcons Infrastructure slipped 52.44%.

The losses extended to consumer-oriented businesses. Go Fashion declined 64.35%, Raymond Lifestyle fell 58.24%, and Aditya Birla Fashion and Retail dropped 53.06%. Even Procter & Gamble Hygiene and Health Care, a relatively established consumer goods company, recorded a 50.31% decline over the period.

The correction follows years of strong gains in smaller companies, when investors were willing to pay high valuations in anticipation of sustained earnings growth.

However, concerns about slowing earnings momentum, higher costs and weakening investor sentiment have prompted a reassessment of these valuations.

Aashish Somaiyaa of White Oak Capital said earnings performance would play an important role in determining which stocks recover. "The results in small and midcaps have been strong and have surprised investors," Somaiyaa said in an earlier assessment of the market, while advocating selective stock picking based on company performance.

Sanjay Doshi of Abakkus had also warned earlier that geopolitical disruptions could affect smaller businesses through higher energy costs, currency movements, logistics expenses and rising procurement costs.

The recent weakness has increased pressure on investors who entered smaller companies during the previous rally.

An October analysis of the Nifty Smallcap 250 showed that 148 of its 250 constituents had delivered negative returns in 2026, even though the broader index had gained more than 7% at the time. The divergence underlined how gains in a limited number of stocks could conceal widespread losses across the market.

However, analysts remain cautious about the sustainability of a broader recovery. Paresh Bhagat, chairman of Mangal Keshav, said in an earlier market outlook that a sustained recovery remained uncertain and would depend on crude oil prices, geopolitical developments, foreign investor flows and corporate earnings.

He expected volatility to continue, with greater scope for a selective recovery in businesses with sustainable earnings growth and reasonable valuations. For stocks already down more than 50%, the challenge is considerable. A stock that has halved in value needs to double merely to return to its previous level. Those that have lost 75% need to rise fourfold to recover their losses.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here