Nearly half the broader market has failed to generate returns so far this year.
As many as 97 BSE 200 companies, accounting for 49% of the index, have not yielded returns year-to-date. The trend was similar in the first eight months of 2025. This marks a deterioration from the comparable periods of 2023 and 2024, when only 10-20% of the index constituents failed to generate returns.
The benchmark Sensex has declined nearly 9% this year, dropping to 77,264 on August 28 from 85,220 on January 1.
The majority of the companies that did not deliver returns were from sectors including automobiles, cement, FMCG, and IT. The latest trend coincides with the deceleration in incremental systematic investment plan (SIP) flows. After hitting a record ₹32,087 crore in March, monthly SIP inflows have remained below it ever since.
The year so far has not been good for IT, FMCG and insurance companies. Of the 12 constituents from the IT and FMCG sectors in the BSE 200 index, nine failed to post returns, and none of the six insurance companies did either.
IT stocks are facing selling pressure driven by a combination of technology disruption fears, weak discretionary spending, and slower US demand. Brokerages have expressed concerns that AI-driven productivity gains may lead to lower billing volumes and increased pricing pressure.
FMCG stocks have been under pressure this year as investors worry about slowing consumption growth and rising raw material costs, which are pressuring gross margins.
On the other hand, capital goods stocks have outperformed, driven by higher government spending on roads, railways, power, defence and urban infrastructure. Of the 10 capital goods firms in the index, seven have generated returns so far this year.
Among the index components, Rail Vikas Nigam was the top loser, declining nearly 40% year-to-date, followed by Patanjali Foods, which has fallen 36%, and ITC at 33%. Wipro and Indian Railway Finance Corporation have declined nearly 32% each.
Top gainers include Hitachi Energy, which rose nearly 85%, Solar Industries India, which rose 68%, and Adani Energy Solutions at 57%.
