These Tata stocks have fallen by up to 40%. Find out what happened in the past year that caused such a significant decline.:

News Topical, Digital Desk : The Indian stock market is often seen as one of the strongest growth stories among emerging markets worldwide. However, after reaching a new peak in September 2024, it has been experiencing a slowdown. On September 27, 2024, the Sensex reached a record high of 85,978.25, while the Nifty reached a high of 26,277.35. However, since this record level, the Sensex and Nifty have declined by more than 6%.

This decline comes after the Nifty surged more than 3.5 times from its March 2020 lows. Global and local factors have driven the Indian stock market into a tailspin.

What were the biggest reasons for the market decline over the past year?

FIIs sell-off: Foreign institutional investors (FIIs) pulled out a record Rs 2,42,400 crore since October 2024, the biggest FII sell-off, according to NSDL.
High valuations and weak earnings: High valuations of many stocks, stricter rules on derivatives trading, and a decline in corporate earnings dampened investor sentiment.
Global turmoil: Heavy tariffs on Indian exports from the US and geopolitical tensions such as the Russia-Ukraine war and the Israel-Hamas conflict increased risks to emerging markets.

According to a report, 245 of the top 750 listed stocks in India have delivered positive returns over the past year. However, the prices of 485 stocks have declined. The average return on these stocks has been -6.25%. More than 240 stocks have seen declines of more than 20%, while only 103 stocks have seen gains of more than 20%.

Which stocks have seen the biggest declines?

IndusInd Bank: Biggest loser, losing more than half of investor wealth.
Trent: A decline of 40% has been seen.
TCS, Tata Motors, Bajaj Auto: These stocks have seen a decline of more than 30%.

Nifty 500 falls

Sterling & Wilson Renewable Energy: down over 63%
Praj Industries, HFCL, Tejas Networks, Raymond Lifestyle: Losses of over 50%
Sona BLW: Down 45%
Colgate-Palmolive: Down over 41%
Indian Overseas Bank, Godrej Properties, IRB Infra, Tata Elxsi, Torrent Power, SJVN, Aditya Birla Fashion, Astral, RVNL, Kalyan Jewellers, Tata Technologies, IREDA and Suzlon Energy have seen a decline of more than 30%.

He further stated that FPIs remained sellers in the first three months of 2025, then became buyers in the next three months, and resumed selling in July-September. The rupee's depreciation also contributed to the selling. Many emerging market currencies strengthened against the dollar. India's earnings growth is expected to pick up from Q3 FY26, accelerating further in FY27.

Record automobile bookings, lower GST rates, and cheaper loans are driving a significant shift in industries like automobiles and white goods, leading to better earnings growth. The rupee is unlikely to depreciate further, so FIIs investing now could benefit. We are near the bottom of FPI outflows.