The average fall in this group was about 23% in 2025. In 2026 so far, the average return is still negative at around 21%. Seven of the eight stocks remain in the red this year, while Power Grid is the only marginal exception with a 0.4% gain.
Wipro has been the worst performer in 2026 among this pack, falling 35% after a 13% decline in 2025. ITC is down 35% this year after falling 17% last year. has lost 33% in 2026 after a 14% fall in 2025.IT stocks take the biggest hit
The biggest pain has come from the IT pack. , Infosys, HCL Technologies and Wipro have all delivered negative returns for two straight years.Also Read: Passenger Vehicles’ consolidated quarterly profit fell sharply as JLR’s weak volumes and margin pressure outweighed domestic growth.
The company's domestic passenger vehicle business has shown growth, but that has not been enough to offset the drag from JLR. For investors, the stock remains tied to whether JLR can recover volumes, protect margins and manage the transition to electric models.
Trent cools after valuation worry
Trent, one of the strongest retail compounders in earlier years, has also lost momentum. The stock fell 40% in 2025 and is down 2% so far in 2026. The fall has been linked to concerns over whether growth can justify high valuations. The company has continued to expand its store network, but a weaker-than-expected quarterly revenue performance raised questions on growth expectations. The stock had been trading at a rich valuation, making it vulnerable when revenue growth disappointed.The pressure has come mainly from cigarette taxation concerns. A sharp increase in cigarette taxes raised worries about volume growth and a possible shift towards illicit trade. In the June quarter, higher cigarette taxes weighed on earnings even as other businesses such as FMCG and paper offered some support.
This has hurt ITC’s defensive appeal. Investors usually look at ITC as a steady cash-flow and dividend stock, but tax uncertainty in its core cigarette business has kept sentiment weak.
Largecaps may still have better odds
The weak performance of these stocks comes at a time when some fund managers still believe largecaps may be better placed than midcaps and smallcaps. Arihant Jain, portfolio manager for SIF and multi-factor funds at Franklin Templeton India, said largecaps may have more room for earnings upgrades because expectations are lower. Mid- and small-cap stocks are already pricing in 20-30% earnings growth, while largecaps are being valued against more modest 10-12% expectations, he said.That means the largecap trade is not broken, but it has become more selective. Power Grid shows that some stocks can stabilise after a weak year. The stock fell 14% in 2025 but is slightly positive in 2026. Its outlook remains linked to India’s transmission capex cycle, though valuations and dividend expectations have been concerns.
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