Nifty 50 reclaiming 25,000 may not boost investors’ portfolio: Samco Securities. Here’s why

The data show that Nifty microcap 250 index fell 12.22 per cent since October 2024. Nifty smallcap 250 declined 12.50 and Nifty midcap 150 depreciated 6.09 per cent. Nifty 50 index only inched up 0.02 per cent since then.
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The Nifty 50 index rally to reclaim 25,000 mark is a bull illusion, according to Samco Securities’ latest study. While Nifty 50 reclaimed 25,000 mark after a seven-month slog, investors’ portfolios could still be sulking, said Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities.

The benchmark indices have been fluctuating amid mixed global cues, including the geopolitical situation between India and Pakistan and the US-China trade deal.

“This is not a broad-based bull run. It is a narrow rally led by a handful of largecaps while the rest of the market has been quietly bleeding,” Sheth said.

“If you are not in the handful of heavyweight stocks pulling the index up, you are likely still in pain,” Sheth added.

The data show that Nifty microcap 250 index fell 12.22 per cent since October 2024. Nifty smallcap 250 declined 12.50 and Nifty midcap 150 depreciated 6.09 per cent. Nifty 50 index only inched up 0.02 per cent since then.

Analysis revealed that nearly 75 per cent constituting 540 of the 730 stocks (excluding recently listed 20 IPOs) still traded in the negative territory since October 15, 2024. Only 190 delivered positive returns.

About 363 stocks declined up to 25 per cent. Meanwhile, 170 stocks were down 25-50 per cent.

According to Sheth, if the investor’s portfolio is stuck in one of these 170 stocks, the market rally feels more like a recession.

Nifty 50 index slipped 47.05 pts or 0.19 per cent to 25,015.05 as at 2.45 pm. The index closed at 25,062.10 on Thursday.

Published on May 16, 2025