IndusInd Bank, HFCL: Five NIFTY 500 stocks that have crashed over 50% as markets turn negative since record high of 2024

The SENSEX and NIFTY50 indices are currently down 4.51% and 4.22% from the record highs of 85,978.25 and 26,277.35, respectively, they touched on September 27 last year. After consistently providing positive returns, 2025 so far has been the first year since the pandemic that the benchmarks have given negative returns to investors.

Persistent selling by foreign institutional investors starting in October last year amid lofty valuations of Indian stocks, tightening of regulations over derivatives trading, weaker than expected quarterly earnings by India Inc. and imposition of sharply higher tariffs on Indian merchandise exports to the United States have dented investors' sentiment towards Indian equities.

Moreover, geopolitical tensions like the ongoing conflict between Israel and Hamas and the war between Russia and Ukraine, which started in 2022 and has no ending in sight, have also added to the pessimism towards equities, analysts said.

Amid underperformance by the benchmarks, here are some stocks from the NIFTY 500 index that have massively underperformed the markets.

At a price-to-earnings ratio of over 55x, the stock was trading at premium levels despite its volatile performance. In such cases, even modest earnings misses or weak guidance can trigger sharp corrections, analysts said.

Meanwhile, its overseas operations have brought additional risk. The company recently disclosed that its US subsidiary’s claims of around $55 million were dismissed in arbitration.

The company reported a consolidated loss of ₹193.87 crore in the first quarter ended June 2025, mainly due to a decline in sales.

The company, which supplied 4G gear to state-owned BSNL, had posted a profit of ₹77.48 crore a year ago.

The consolidated revenue of Tejas Networks plunged about 87% to ₹202 crore during the reported quarter from ₹1,563 crore in the June 2024 quarter.

Tejas explained that revenue came lower due to delays in receipt of purchase orders (PO) and inventory arrival and shipment clearances for a few customers.

The fall in profit came on the back of a 25% year-on-year (YoY) decline in its revenue from operations to ₹871.02 crore during the quarter under review, as against ₹1,158.24 crore in the June quarter of FY25.

The tech company’s revenue from its telecom products segment fell 18.76% YoY to ₹577.91 crore in the quarter, as compared to ₹711.36 crore in the same period a year earlier. The turnkey contracts and services segment contributed ₹293.11 crore to its revenue, down 34.34% YoY from ₹446.38 crore in Q1FY25.

Praj Industries' net profit dropped 94% in the first quarter of current financial year to ₹5 crore as against ₹84 crore in the year-ago period.

Its revenue from operations declined 8% to ₹640 crore, and its operating profit margin contracted sharply by 830 basis points to 4.9% as against 13.16% in the year-ago period.

Following these developments, its chief executive officer (CEO) and managing director (MD), Sumant Kathpalia, resigned from his post in April.

In March, IndusInd Bank noted some discrepancies in its derivatives portfolio which could have an adverse impact of about 2.35% of the bank's net worth as of December 2024, as per its internal review.