NIFTY 50 Stocks Slipping? What You Need to Know in 2025

As of February 28, 2025, several NIFTY 50 stocks have experienced significant declines from their 52-week highs. Below is an analysis of the top 10 such stocks, including their current performance, reasons for the decline, technical trends, fundamental insights, and investment recommendations. 

Top 10 Nifty 50 Stock Falling from their 52 Week High

Key Points

Research suggests that the top 10 NIFTY 50 stocks falling from their 52-week high include TATAMOTORS, ADANIENT, TRENT, HEROMOTOCO, INDUSINDBK, BAJAJ-AUTO, BPCL, ASIANPAINT, ONGC, and ADANIPORTS, with percentage drops ranging from 34.04% to 47.36%.

Sector-specific challenges, such as weak auto sales for TATAMOTORS and regulatory issues for ADANIENT, seem likely to contribute to these declines.

The evidence leans toward technical indicators, such as the RSI, showing bearish to neutral momentum for most stocks, with some, like INDUSINDBK, showing bullish signs.

Fundamental analysis indicates undervalued stocks like TATAMOTORS (P/E 7.50) and ONGC (P/E 7.21) may offer buying opportunities, while overvalued stocks like TRENT (P/E 114.92) suggest caution.

Table: Top 10 NIFTY 50 Stocks Falling from Their 52-Week High

The following table summarizes the current state of these stocks as of February 28, 2025, based on the latest available data:

Stock	52-Week High (₹)	Current Price (₹)	Percentage Drop (%)
Tata Motors	1179.00	620.07	47.35%
Adani Ent.	3,743.90	2097.55	43.97%
Trent	8345.00	4838.65	42.02%
Hero MotoCorp	6246.25	3704	40.70%
IndusInd Bank	1,576.35	972.30	38.32%
Bajaj Auto	12,774.00	7,915.20	38.04%
BPCL	376.00	238.00	36.70%
Asian Paints	3,394.90	2,181.20	35.75%
ONGC	345.00	225.65	34.59%
Adani Ports	1,621.40	1,072.00	33.88%

Reasons for Decline:

Each stock's decline is influenced by sector-specific and company-specific factors. For instance, TATAMOTORS and HEROMOTOCO face weak auto sales, while ADANIENT deals with regulatory scrutiny. TRENT is impacted by retail sector competition, and energy stocks like BPCL and ONGC are affected by oil price volatility.

Technical Trends:

RSI values indicate momentum, with most stocks showing neutral to bearish trends (e.g., TATAMOTORS at 31.92, ADANIENT at 34.74). Stocks like TRENT (RSI 30.23) are near oversold, suggesting potential recovery, while INDUSINDBK (RSI 56.42) shows bullish momentum despite its drop.

Fundamental Insights:

P/E ratios reveal valuation disparities. Undervalued stocks like TATAMOTORS (P/E 7.50) and ONGC (P/E 7.21) may attract value investors, while TRENT (P/E 114.92) appears overvalued, indicating caution.

The decline in these stocks can be attributed to a combination of sector-specific and company-specific factors, identified through recent news and market analysis:

Auto Sector (TATAMOTORS, HEROMOTOCO, BAJAJ-AUTO): The automobile industry has faced challenges such as weak sales, increased competition, and regulatory changes. Specifically, as noted in Economic Times Tata Motors news, TATAMOTORS reported a significant 7% drop in share price following a Q3 profit decline due to weak car sales. HEROMOTOCO and BAJAJ-AUTO likely face similar pressures, with potential impacts from electric vehicle transitions and consumer demand shifts.

Economic Times

Conglomerate (ADANIENT): ADANIENT has been affected by regulatory scrutiny and financial performance concerns, with news highlighting a 97% plunge in Q3 profit, as noted in the Economic Times Adani Enterprises news. Market sentiment and ongoing investigations have contributed to its decline.

Retail and Consumer Goods (TRENT, ASIANPAINT): TRENT, part of the retail sector, has experienced moderating growth and rising competition, with reports indicating concerns over Zudio's rapid expansion leading to potential market saturation, as per Economic Times Trent news. ASIANPAINT faces competition and raw material price fluctuations, impacting its stock performance.

Banking Sector (INDUSINDBK): The banking sector, including INDUSINDBK, has dealt with issues related to loan growth, asset quality, and regulatory compliance, potentially affecting investor confidence and stock prices, though specific news was not detailed in the analysis.

Energy Sector (BPCL, ONGC): Energy stocks have been volatile due to fluctuations in oil prices and regulatory policies. BPCL and ONGC are likely impacted by global oil price changes and domestic policy shifts, contributing to their stock declines.

Ports and Logistics (ADANIPORTS): ADANIPORTS may be affected by changes in trade volumes or competition, with sector-specific challenges influencing its performance, though detailed news was not extensively covered.

These insights were gathered from various financial news portals, ensuring a broad understanding of the factors at play.ASIANPAINT: RSI 40.66, slightly above neutral, showing some stabilization, possibly near moving averages.

Technical Analysis

Technical indicators, particularly RSI and assumed moving average trends, provide insights into momentum and trend direction:TATAMOTORS: RSI 31.92, below 50, indicating neutral to bearish momentum, likely below its 200-day moving average given the significant price drop.

• ADANIENT: RSI 34.74, below 50, suggesting bearish momentum, assumed below moving averages.
• TRENT: RSI 30.23, near oversold territory (below 30), potentially a buying opportunity if other fundamentals improve, likely below long-term moving averages.
• HEROMOTOCO: RSI 31.81, neutral to bearish, below moving averages.
• INDUSINDBK: RSI 56.42, above 50, indicating bullish momentum, which is unexpected given the percentage drop, suggesting possible consolidation or reversal, assumed above short-term moving averages.
• BAJAJ-AUTO: RSI 34.49, neutral to bearish, below moving averages.
• BPCL: RSI 33.36, neutral to bearish, below moving averages.
• ASIANPAINT: RSI 40.66, slightly above neutral, showing some stabilization, possibly near moving averages.
• ONGC: RSI 37.24, neutral to bearish, below moving averages.
• ADANIPORTS: RSI 42.92, slightly positive, showing resilience, possibly above short-term moving averages.

Moving average trends were inferred based on the stock's price performance, assuming that stocks with significant drops are below their 50-day and 200-day moving averages, aligning with general market analysis practices.

Fundamental Insights

Fundamental analysis focuses on P/E ratios and general earnings performance, with data sourced from the Nifty 50 stocks list:

P/E Ratios:

• TATAMOTORS: 7.50, relatively low, suggesting undervaluation compared to peers, potentially attractive for value investors.
• ADANIENT: 62.15, high, indicating overvaluation, especially with regulatory concerns.
• TRENT: 114.92, very high, significantly overvalued, suggesting caution despite growth potential.
• HEROMOTOCO: 18.11, moderate, average valuation within the auto sector.
• INDUSINDBK: 11.24, low, undervalued, offering potential for growth if sector stabilizes.
• BAJAJ-AUTO: 30.52, moderate to high, reasonably valued but sector challenges persist.
• BPCL: 7.58, low, undervalued, attractive for energy sector investors.
• ASIANPAINT: 48.68, high, overvalued, but strong brand may support valuation.
• ONGC: 7.21, very low, undervalued, potential for growth with favorable oil prices.
• ADANIPORTS: 21.92, moderate, fairly valued, depends on sector performance.

Recommendations

Based on the comprehensive analysis, the following recommendations are provided, acknowledging the complexity and need for individual investor research:

• TATAMOTORS: Hold – Undervalued (P/E 7.50), but sector challenges persist; wait for signs of recovery.
• ADANIENT: Avoid – Overvalued (P/E 62.15) with regulatory risks, high uncertainty.
• TRENT: Hold – Overvalued (P/E 114.92), but near oversold RSI (30.23) suggests monitoring for potential turnaround.
• HEROMOTOCO: Hold – Moderate valuation (P/E 18.11), sector issues; wait for stabilization.
• INDUSINDBK: Buy – Undervalued (P/E 11.24), bullish RSI (56.42), potential for growth if banking sector improves.
• BAJAJ-AUTO: Hold – Moderate to high P/E (30.52), sector challenges; monitor sales performance.
• BPCL: Buy – Undervalued (P/E 7.58), attractive for value investors in energy sector.
• ASIANPAINT: Hold – High P/E (48.68), strong brand; wait for better entry points.
• ONGC: Buy – Very low P/E (7.21), potential for growth with favorable oil prices.
• ADANIPORTS: Hold – Fairly valued (P/E 21.92), monitor sector trends for opportunities.

The recommendations provided are based on current market data and analysis. However, given the inherent volatility of financial markets, investors should conduct their own due diligence and consult with a certified financial advisor before making any investment decisions.

Investment Takeaways

The analysis highlights several key takeaways for investors:

1. The Indian stock market, particularly the NIFTY 50, is experiencing volatility, with sector-specific challenges impacting stock performance.
2. Investors should be cautious, conducting thorough research and considering their risk tolerance and investment horizon before making decisions.
3. Value investing opportunities exist in undervalued stocks like TATAMOTORS, INDUSINDBK, BPCL, and ONGC, which show low P/E ratios and potential for recovery.
4. High P/E stocks like ADANIENT and TRENT carry higher risk, especially with regulatory or competition issues, and should be approached with caution.
5. Technical indicators like RSI can provide insights into momentum, with near-oversold conditions in stocks like TRENT offering potential entry points, while bullish RSI in INDUSINDBK suggests resilience.

Conclusion

In conclusion, the top 10 NIFTY 50 stocks falling from their 52-week high present a mix of opportunities and risks. Stocks like INDUSINDBK, BPCL, and ONGC appear undervalued and offer buying opportunities, while others like ADANIENT and TRENT require caution due to high valuations and external pressures. Investors should leverage this analysis as a starting point, ensuring they align decisions with their financial goals and market outlook.