.png){kind=logo}
Nifty 100 stocks representing India's corporate giants witnessed varied performances over the past year. Since 2025 has just started, everyone is curious whether the worst-performing stocks could stage a turnaround. Given both global and local economic factors are in play, the outlook can only be cautiously optimistic.
Let’s explore in detail the 2025 outlook for the worst Nifty 100 stocks, the best underperforming stock picks, and upcoming market recovery trends.
As of January 21, 2025, the Nifty index closed at Rs 23,025 with a decline of 320 points (-1.4%). The decline was mainly due to FII selling and world policy jitters. Feared US tariff proposals under President Trump are another reason for the market's downfall. The general selling could be observed in some patches, but genuine stocks like Kotak Mahindra Bank showed resilience. Nonetheless, the variation was there in all the sectors.
Zomato, Trent, and Jio Financial Services were at the top of the losers' list, showing a volatile start to the year. A slightly positive advance-decline ratio of 1.3 was present. Thus indicating pressure in some segments. However, it also shows potential sectors that would still support market recovery.
Currently, the Nifty is at a strong resistance of Rs. 23,780. Analysts opine that to move upwards strongly, it should cross this hurdle. The closely watched support level is now at Rs. 23,200 and Rs. 22,800. Any breakdown of these would indicate further slides.
Historically, underperforming stocks have reflected recovery potential as market conditions stabilize. The upcoming quarterly earnings reports will prove to be an important indicator of financial health and prospects for recovery by companies like HDFC Bank and Pidilite Industries.
The worst Nifty 100 stocks in 2024 belonged to the following that witnessed a considerable fall:
IndusInd Bank: Down by 40% on account of loan delinquencies rising in MSME and the CV business. The asset quality worsened, leading to more provisions. This pulled down profitability.
GTPL Hathway: This stock is down by 94.31%. The shares have fallen mainly because of poor profit performance during quarterly results. The company’s sales have gone down in the third quarter.
CEAT: The profits fell 46.48% due to higher cost pressures and problems in the tire-making business.
PCBL Ltd: Decreased by 36.81% and followed the sentiments of other underperforming sectors in general.
Kesoram Industries: Displayed sharp losses in profitability, mirroring the industry overall.
These are merely examples of market volatility and risk. Corporations must be researched thoroughly, and their governance structures must be carefully analyzed before investing in a particular stock.
Sector performances generally guide individual stock recoveries. Here are closer looks at emerging trends:
Oil Marketing Companies (OMCs): Stocks closely moving with crude, such as HPCL and IOC, are believed to be helped by positive price momentum. HPCL has already shown excellent momentum, which makes it a recovery candidate.
Big Cap Stocks: Reliance and HDFC, two of the disappointing stocks in 2024, are set to rebound on the positives of earnings pick-up and good market sentiment.
FMCG Sector: Urbanization, along with increasingly health-conscious consumers, could help turn around the prospects of FMCG companies. These companies are focused on organic and healthy product lines.
Tech: Cloud and AI stocks will remain the segment's primary positives, even when semiconductors face periodic volatility.
Underperforming stock picks in 2025 are as follows:
Shriram Finance: Target Price ₹3,825 (upside of 31%)
Fortis Healthcare: Target Price ₹860 (upside of 28%)
Zee Entertainment: Target Price ₹200 (upside of 40.8%)
Based on strong fundamentals and tailwinds specific to sectors, these projections provide investors with long-term opportunities. Analysts at various brokerage firms feel it is worth placing a bet in 2025 on the above stocks.
For investors, a cautious yet optimistic approach is advisable. Monitoring resistance levels, tracking sector trends, and focusing on undervalued stocks with strong fundamentals will be critical.
As global economic uncertainties persist, recovery for the worst-performing Nifty 100 stocks may depend on stabilizing market conditions, favorable earnings reports, and sector-specific growth. Patience and strategic investment decisions will be key to navigating 2025’s complex financial landscape.
