Business

Largecaps bear brunt of selloff as 84% of Nifty 50 stocks slip below 200-DMA

By Sohail Khan 5 October 2026, 6:03 am

Benchmarks
Nifty22,421.95-198.5

FEATURED FUNDS★★★★★

Motilal Oswal Midcap Fund Direct-Growth

5Y Return
19.6 %

Invest Now

Enter search text:

Business News›Markets›Stocks›News›Largecaps bear brunt of selloff as 84% of Nifty50 stocks slip below 200-DMAs

Read Today's Paper

Largecaps bear brunt of selloff as 84% of Nifty50 stocks slip below 200-DMAs
Synopsis

The Indian stock market is facing notable turmoil, with a pronounced selloff impacting major players like Tata Motors and Infosys. Currently, a staggering 84% of Nifty 50 stocks are underperforming their 200-day moving averages. In contrast, smaller stocks are showing notable strength, as many in the Nifty 500 outstrip established blue-chip firms.

Listen to this article in summarized format

Loading…
×
×

Unlock AI Briefing and Premium Content

New Year Offer 24 Hours Left
Already a member? Sign In

What's Included

Exclusive Stories
Daily ePaper Access
Smart Market Tools
Curated Investment Ideas
Ad-lite Experience
Subscription

Largecaps bear brunt of selloff as 84% of Nifty 50 stocks slip below 200-DMA<br> — In the Nifty 50, 42 of the 50 stocks are below their 200-DMA.

Mumbai: The Indian stock market's latest selloff is increasingly becoming a large-cap story, with 84% of Nifty 50 stocks now trading below their 200-day moving averages (DMAs), while smaller stocks have shown greater resilience.

In the Nifty 50, 42 of the 50 stocks are below their 200-DMA. In the Nifty 500, 310 stocks, or 65%, are below the level, compared with 452 stocks, or 45%, in the broader BSE 1000.

The 200-day moving average (200-DMA), calculated from the average closing price over the past 200 trading sessions, is widely regarded as a key indicator of the long term trend of an index or a stock. When a stock trades above it, the trend is considered positive, while when it falls below, it shows weakness.

ET Bureau

"The divergence reflects the performance of different market segments over the past six months, with small- and micro-cap stocks seeing strong outperformance and mid caps also performing better than the Nifty," said Rohit Srivastava, founder of Indiacharts.

Read more: Will Nifty, Sensex plunge for 9th straight week? TCS Q2, RBI MPC among 4 factors to drive Dalal Street from Monday

The pressure is visible among blue-chip stocks. Tata Motors PV, Maruti Suzuki and Infosys are trading nearly 19% below their respective 200-DMA levels, while TCS is down around 18%. HUL, ITC and Jio Financial are each around 17% below their 200-DMA, while RIL, HDFC Life, Tata Consumer, ONGC, M&M and HDFC Bank are around 14% below the level.

Some of the weakness has spilled over into mid caps too but not as much in small- and micro-cap stocks, suggesting that selling remains concentrated in large caps. Within the Nifty 500, 190-odd stocks are trading above their 200-DMA. Of these, 52 are 1-5% above the level, 28 are 5-10% above, 65 are 10-20% above, 21 are 20-30% above and 15 are more than 30% above their 200-DMA.

Oversold

While a decline below 200 DMA points to a weak undertone, extreme readings are considered contrarian indicators.

Analysts said the extent of fall in blue-chips is suggesting the selling is overdone. "The drop in Nifty is showing it is oversold as it was in March of 2020 or even in March of 2026 this year," said Srivastava. "Such extreme readings in the Nifty have historically been associated with market bottoms."

Mid- and small-cap stocks are not yet there. "A similar condition across the Nifty 500 would point to broader market capitulation. But we have not seen capitulation across the board as of now," he said.

Mehul Kothari, vice-president, Technical & Derivative Research, Anand Rathi Share and Stock Broker, said the next signal would come from whether breadth starts confirming the support visible in the indices."If Nifty 500 sustains its long-term trendline support and the percentage of stocks below their 200-DMA starts declining, it would indicate improving participation and potential stabilisation," he said.

Conversely, if more stocks currently within 1-10% of their 200-DMA start slipping into the 10-30% zone, it would suggest that the correction is broadening."

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

…moreless

(You can now subscribe to our ETMarkets WhatsApp channel)

Read More News on
tcsNifty 50Tata MotorsMaruti Suzukihdfc banktata motors pvhul

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

…moreless

Enter search text:

BrowseCompanies:
ABCDEFGHIJKLMNOPQRSTUVWXYZ
123456789

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds
Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year