Sensex, Nifty 50 Deliver First Negative Year Since Pandemic; These Nifty 500 Stocks Crashed Up to 60%

Mumbai | September 24

The Indian stock market has hit an unusual patch in 2025, with the Sensex and Nifty 50 posting their first year of negative returns since the pandemic. The Sensex is currently down 4.51% from its record high of 85,978.25, while the Nifty 50 is lower by 4.22% from its lifetime peak of 26,277.35, both touched in September 2024.

Why Indian equities turned negative in 2025

The downturn follows persistent foreign institutional investor (FII) selling since October 2024, triggered by lofty valuations, stricter derivatives trading rules, and sharply higher US tariffs on Indian exports.

Earnings misses across India Inc. have added to the strain. Global flashpoints — from the Israel–Hamas conflict to the prolonged Russia–Ukraine war — have kept sentiment fragile, making 2025 the first true stress test for Indian equities since Covid.

Nifty 500 underperformers: Stocks that lost over 50%

The Nifty 500 index has fared worse than the benchmarks, with several high-profile names erasing more than half their value in the past year.

Sterling and Wilson Renewable Energy share price has dropped 61% from its September 2024 peak of ₹685. Expensive valuations, governance worries, and a setback in its US arbitration case dragged the stock down from premium levels.

Tejas Networks share price has tumbled 53% to about ₹590. The company swung to a ₹194 crore loss in Q1FY26, with revenues plunging 87% YoY due to delayed purchase orders and shipment issues tied to BSNL’s 4G rollout.

HFCL stock has slumped 52% over the year. Revenue from operations fell 25% YoY in Q1FY26, while two straight quarterly losses reversed last year’s profitability.

Praj Industries share price is lower by 51% at ₹372. Net profit collapsed 94% YoY to just ₹5 crore in Q1FY26, while operating margins shrank to 4.9% from 13.16% a year earlier.

IndusInd Bank stock has lost 49% since last September after discrepancies were found in its derivatives portfolio, impacting 2.35% of net worth. The resignation of CEO Sumant Kathpalia in April deepened the slide.

Outlook for Indian markets

The Sensex and Nifty 50 remain below their peaks, but steady retail inflows and mutual fund SIPs have provided a cushion. For equities to regain momentum, a mix of lower interest rates, easing global pressures and stronger earnings growth will be needed.

For now, 2025 is shaping up as a reset year. From Sterling and Wilson Renewable Energy to Tejas Networks, HFCL, Praj Industries and IndusInd Bank, several Nifty 500 stocks have corrected 50–60%, showing how quickly valuations can unravel when fundamentals disappoint.