Nifty soars 11% in 10 days, but why is your portfolio not moving up?

India's benchmark Nifty has surged nearly 11% over the past 10 trading sessions, staging one of its strongest recoveries of 2026. Yet, many retail investors are struggling to see similar gains in their portfolios as the rally remains heavily concentrated in a handful of large-cap stocks.

The Nifty has climbed 2,430 points, or 10.75%, from its October 23 closing level of 22,600 to 25,030 on November 6. The index jumped another 2.01% on Friday, extending its winning streak to seven sessions and reclaiming the 25,000 mark for the first time in more than eight months.

The sharp recovery has been supported by falling crude oil prices, renewed foreign institutional buying, improving corporate earnings and easing geopolitical concerns. However, the gains have been uneven, with large companies attracting most of the fresh investment.


Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, said the divergence explains why many investors are seeing little improvement in their portfolios even as benchmark indices rally. "Lot of investors are scratching their head thinking why their portfolio isn't moving up with Nifty. The simple answer is you don't own what is moving up," Sheth said.

According to data shared by Sheth, the Nifty Top 10 Equal Weight Index has surged 10.64% over the past month. The index tracks the ten heavyweight stocks in the Nifty 50, assigning an equal weight of 10% to each constituent, with rebalancing every six months.

In contrast, the Nifty Midcap 150 and Nifty Smallcap 250 indices have each declined 2.74% over the same period, while the Nifty Microcap 250 has fallen 5.32%.

The rebound has been particularly strong in banking, technology and telecommunications stocks that suffered substantial losses during the correction earlier this year.

According to Sheth's analysis, ICICI Bank and Infosys have each gained 16% over the past month, while Bharti Airtel has advanced 14.61%. Kotak Mahindra Bank has risen 10.08%, HDFC Bank 10%, Larsen & Toubro 9.02% and Reliance Industries 8.44%.

Other major stocks, including SBI, ITC and Axis Bank, have also recorded gains during the period. The ten heavyweight stocks have delivered an average return of 10.19% over the past month, even though their average performance for 2026 remains negative at 6.73%, according to SAMCO's analysis.

Several of these stocks had experienced sharp corrections earlier in the year. HDFC Bank remains down 21.55% in 2026, while Infosys has lost 27.76%, ITC has declined 30.12% and Reliance Industries is down 16.48%.

Their earlier losses have created room for a recovery as investors reassess valuations and return to established companies.

Sheth identified two major factors behind the divergence between large-cap and smaller stocks. The first is a recovery in valuations after the steep correction that began in January 2026. Several heavyweight stocks had become relatively attractive following months of selling pressure, encouraging investors to return as market conditions improved.

The second is the return of foreign portfolio investors, whose buying typically benefits large and liquid stocks. Foreign investors have deployed around Rs 40,000 crore into Indian equities over eight sessions, according to the figures cited by Sheth.

Large companies are often the first beneficiaries when overseas funds increase their exposure to India because they offer the liquidity required to invest substantial amounts without significantly disrupting share prices.

The change in institutional sentiment follows months of foreign selling driven by rising crude prices, geopolitical tensions and concerns about India's growth and valuations.

On November 5 alone, foreign investors bought Rs 15,000 crore worth of Indian shares on a net basis, their largest single-day purchase in nearly six years, according to Reuters. The renewed interest has helped lift banking stocks and other index heavyweights.

Smallcap investors still waiting for a recovery
The divergence was visible even during Friday's strong market rally. While the Nifty rose 2%, the Nifty Midcap 100 ended almost unchanged, and the Nifty Smallcap 100 declined 0.82%.

The broader market has struggled throughout 2026 as elevated valuations, disappointing earnings in some companies and foreign outflows weighed on investor sentiment. Many small-cap stocks had rallied sharply in previous years, leaving them vulnerable when investors began reassessing growth expectations.

The next test will be whether foreign investment flows and improving earnings encourage buying beyond the largest companies. A broader recovery would require participation from mid-cap and small-cap stocks, where many retail investors have substantial exposure.

Sheth believes the market is still in the early stages of a heavyweight-led rebound, with the wider market yet to demonstrate convincing strength.

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.