Last line of defence! How 7 Nifty stocks survived the market’s two-month bloodbath

The Nifty's two-month slide has been brutal enough to leave very few places to hide. The benchmark index has fallen for eight straight weeks, its longest losing streak in 25 years, as foreign selling and elevated crude prices squeezed risk appetite. The Nifty and Sensex lost over 8% over the eight-week stretch.

The pressure deepened in September, when foreign investors sold aggressively and crude prices stayed near uncomfortable levels for India’s macro position.

The September fall was led by a familiar set of worries. Higher US Treasury yields made dollar assets more attractive, crude oil raised concerns over India’s import bill and inflation, and the rupee’s weakness added another layer of risk for foreign investors. FPIs sold Indian equities worth Rs 25,662 crore in September, their biggest monthly outflow in six months, while the Nifty and Sensex fell about 5.7% each during the month.


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Against that market, only seven Nifty stocks stood out over the last two months. Kotak Mahindra Bank gained 7%, Dr Reddy's Laboratories rose 5%, Eternal advanced 4%, Adani Ports climbed 2% and Coal India gained 2%. Axis Bank and Bharat Electronics fell only 1% and 1%, respectively, far less than the benchmark.

Kotak finds support from bank recovery hopes

Kotak Mahindra Bank was the biggest outperformer in the list, helped by renewed analyst interest in large private banks. Macquarie recently upgraded Kotak Mahindra Bank to Outperform and included it among its preferred banking names, along with ICICI Bank, SBI and City Union Bank.

The stock's outperformance also reflects a shift toward cleaner large-cap financials after the broader sell-off. Investors have moved back to banks where balance sheets look stronger and valuations appear less stretched after months of underperformance.

Dr Reddy's gets pharma's defensive bid

Dr Reddy’s Laboratories was another clear outlier. Pharma stocks often attract defensive money during market stress, but Dr Reddy’s had company-specific support as well. Nomura recently retained its Buy rating on the stock with a target price of Rs 1,740, citing upcoming milestones in the company’s biologics business, including expected USFDA clearance for its biologics plant and the biosimilar Abatacept action date in December 2026.

Citi also upgraded Dr Reddy's to Buy from Sell after keeping a negative view on the stock for more than three years, according to reports. The combination of defensive sector appeal and fresh brokerage support helped the stock rise 5% even as the index cracked.

Eternal rides food delivery and Blinkit confidence

Eternal, the parent of Zomato and Blinkit, gained 4% over the two-month period. The stock has stayed in favour as investors continue to back its food delivery business and the long-term growth of quick commerce.

Goldman Sachs maintained a Buy rating on Eternal and raised its target price to Rs 385 from Rs 345, saying the company could achieve $1 billion in EBITDA by FY29.

Other brokerages have also looked past short-term profit pressure. Analysts are bullish on Eternal despite a Q1 profit miss, citing strong execution in food delivery, quick commerce growth and improving Blinkit profitability.

Adani Ports benefits from cargo strength

Adani Ports and Special Economic Zone rose 2%, helped by strong operational numbers. The company reported record August cargo volumes of 50 million metric tonnes, up 19% year-on-year, while HSBC maintained a Buy rating and said second-quarter cargo growth so far was ahead of its estimate.

Coal India draws demand, dividend buyers

Nuvama upgraded the stock to Buy and cited strong demand and low coal inventories as growth drivers. Coal India’s offtake rose 12% year-on-year (YoY) to 61.2 million tonnes in September, marking the fifth straight month of volume growth.

In a falling market, investors often move toward high-dividend, cash-generating companies. Coal India fit that requirement. Its defensive appeal helped the stock hold up even as high-beta parts of the market sold off.

Axis and BEL limit the damage

Axis Bank and Bharat Electronics did not rise, but their small declines still made them outliers. Axis Bank posted a strong business growth in September quarter, with gross advances rising 23% YoY to Rs 13.85 lakh crore as of September 30.

Bharat Electronics held up because defence remains one of the few structural growth themes still backed by government spending and order visibility. The company recently won additional orders worth Rs 648 crore, while its order book stood at Rs 72,258 crore.

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.