Largecap safety trade? 8 Nifty stocks test investor patience with losses for two years

Largecap stocks are again coming back into focus as investors turn cautious on expensive midcap and smallcap names. But not every largecap has protected wealth. A set of Nifty stocks has delivered negative returns for two straight years, showing that even index heavyweights can become long spells of pain for investors.

Ace Equity data shows that eight Nifty stocks fell in 2025 and have either remained weak or barely recovered in 2026. These include Tata Motors PV, Trent, TCS, ITC, HCL Technologies, Power Grid Corporation, Infosys and Wipro.

The average fall in this group was about 23% in 2025. In 2026 so far, the average return is still negative at around 21%. Seven of the eight stocks remain in the red this year, while Power Grid is the only marginal exception with a 0.4% gain.


Wipro has been the worst performer in 2026 among this pack, falling 35% after a 13% decline in 2025. ITC is down 35% this year after falling 17% last year. Infosys has lost 33% in 2026 after a 14% fall in 2025.

IT stocks take the biggest hit

The biggest pain has come from the IT pack. TCS, Infosys, HCL Technologies and Wipro have all delivered negative returns for two straight years.

Also Read: These large-caps have ‘strong buy’ & ‘buy’ recos and an upside potential of up to 20%, according to analysts

The pressure on Indian IT stocks has been driven by weak discretionary spending, longer decision cycles by clients, slower deal ramp-ups and rising concerns that artificial intelligence may reduce demand for traditional outsourcing services.

Infosys had forecast weaker-than-expected revenue growth for FY27 as macro uncertainty and AI-led changes made clients reassess technology spending. TCS also reported its first annual revenue decline in more than two decades, while HCLTech had warned of weak annual growth.

Wipro has faced the deepest cut this year. The stock is down 35% in 2026 so far. The company has been under pressure because of subdued growth, weak revenue guidance and cautious commentary on enterprise technology spending. Clients have been directing more budgets towards AI-led initiatives rather than expanding overall IT spending, which has kept discretionary projects under pressure.

HCL Technologies is down 21% this year after a 15% fall in 2025. The company’s unchanged FY27 outlook has added to concerns over the pace of demand recovery. Weak discretionary technology spending, pressure in telecom and manufacturing accounts, and slower client spending have weighed on the stock.

TCS has fallen 30% in 2026 after a 22% decline in 2025. Even though the company has been investing in AI services, investors have remained worried about whether AI will become a growth driver quickly enough to offset pressure on the traditional services model.

Tata Motors hit by JLR troubles

Tata Motors PV has also failed to recover this year. The stock fell 50.37% in 2025 and is down another 17% in 2026. The main pressure has come from Jaguar Land Rover. JLR has been hit by US tariffs, weak demand in China, the planned wind-down of older Jaguar models and the impact of a cyberattack. Tata Motors Passenger Vehicles’ consolidated quarterly profit fell sharply as JLR’s weak volumes and margin pressure outweighed domestic growth.

The company's domestic passenger vehicle business has shown growth, but that has not been enough to offset the drag from JLR. For investors, the stock remains tied to whether JLR can recover volumes, protect margins and manage the transition to electric models.

Trent cools after valuation worry

Trent, one of the strongest retail compounders in earlier years, has also lost momentum. The stock fell 40% in 2025 and is down 2% so far in 2026. The fall has been linked to concerns over whether growth can justify high valuations. The company has continued to expand its store network, but a weaker-than-expected quarterly revenue performance raised questions on growth expectations. The stock had been trading at a rich valuation, making it vulnerable when revenue growth disappointed.

For Trent, the business story remains strong, but the stock market has become more demanding. High-quality companies can also correct when valuations run ahead of earnings.

ITC loses defensive tag

ITC has been another disappointment. The stock fell 17% in 2025 and has dropped 35% so far in 2026.

The pressure has come mainly from cigarette taxation concerns. A sharp increase in cigarette taxes raised worries about volume growth and a possible shift towards illicit trade. In the June quarter, higher cigarette taxes weighed on earnings even as other businesses such as FMCG and paper offered some support.

This has hurt ITC’s defensive appeal. Investors usually look at ITC as a steady cash-flow and dividend stock, but tax uncertainty in its core cigarette business has kept sentiment weak.

Largecaps may still have better odds

The weak performance of these stocks comes at a time when some fund managers still believe largecaps may be better placed than midcaps and smallcaps. Arihant Jain, portfolio manager for SIF and multi-factor funds at Franklin Templeton India, said largecaps may have more room for earnings upgrades because expectations are lower. Mid- and small-cap stocks are already pricing in 20-30% earnings growth, while largecaps are being valued against more modest 10-12% expectations, he said.

That means the largecap trade is not broken, but it has become more selective. Power Grid shows that some stocks can stabilise after a weak year. The stock fell 14% in 2025 but is slightly positive in 2026. Its outlook remains linked to India’s transmission capex cycle, though valuations and dividend expectations have been concerns.

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