Investors investing in the stock market often turn to big companies (large cap) in search of security of their capital. It is a common belief that no matter how much ups and downs there are in the market, these established companies will not let the investors lose their money. But the picture that is emerging of the Indian stock market from the beginning of the year 2026 is quite surprising.
The ever-increasing geopolitical tension in the Middle East and the skyrocketing prices of crude oil have shaken the stock market badly. Amidst this huge selloff, common investors are most troubled to see that the large cap stocks which were considered the ‘security blanket’ of their portfolio are also now collapsing. If we look at the performance of the last 5 years, the shares of big companies like Tata Consultancy Services (TCS) and Infosys have either remained at their place or have given negative returns. However, amidst all this market noise, the thing to note is that despite the decline, the fundamentals of many of these companies are still strong.
How did the shine of the ‘giants’ of IT sector fade?
The Indian IT sector has always been a favorite of investors, but the recent times have proved challenging for it. Even TCS, which is considered to be the biggest name in the market, has not been able to live up to the expectations of the investors. The company has recorded a compound annual growth rate (CAGR) of about 8 percent in its profits in the last five years, but this financial growth has not been translated into share prices. As a result, its shares have fallen by more than 20 percent in the last five years.
Following the same path, shares of another IT giant Infosys have also taken a dive of 8.88 percent. Infosys’ profits have also increased at the rate of about 10 percent CAGR during this period. Actually, the biggest reason behind this decline is the increasing influence of Artificial Intelligence (AI). The rapid emergence of AI has raised concerns among investors about the future of traditional IT services, which has put heavy pressure on the sentiment of these stocks.
Big profits, yet why shares are down?
When the profits of a company increase continuously, then usually its stock also increases rapidly. But in the case of Adani Green Energy, the story seems to be completely opposite. The company had suffered a huge loss of Rs 60 crore in the financial year 2020, but by the financial year 2025 the company made a spectacular comeback and reached a net profit of about Rs 2,001 crore. Despite this, its impact on the stock market has not been positive and the stock has fallen by more than 26 percent in the last five years. The biggest reason for this is the increasing debt burden on the company. By September 2025, the total debt of the company jumped from Rs 14,866 crore to Rs 88,153 crore, thereby shaking the confidence of investors.
On the other hand, insurance giant HDFC Life Insurance has also disappointed the investors. Despite immense potential for long-term growth in the Indian insurance sector, the company’s shares have declined by more than 12 percent in the last five years. During this period, the company’s profit growth was limited to only around 5 percent CAGR, which failed to meet the high expectations of the investors.
Why did the uncrowned king of paint market lose color?
Asian Paints, the largest paint company which has a strong identity in every household of the country, is currently facing very tough competition in the market. Recently, Birla Opus has made a strong entry in the market, due to which the battle to woo customers in the paint industry has intensified. This has had a direct and negative impact on the business and investor sentiment of Asian Paints. It is also shocking that for the first time in the last decade, there was a decline of about 4 percent in the company’s total sales in the financial year 2025. If we look at the data of the last five years, this giant stock has also declined by 8.56 percent.
Is there an opportunity to earn now?
The current market situation is certainly a testing time for investors. It is natural to feel nervous after seeing such a decline in the shares of big companies. However, according to experts, all these stocks of companies whose core business and profits are continuously increasing can make good returns in the future. In this period of decline, investors must keep companies on their radar by examining their strong fundamentals.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.