1 Year Since All-Time Highs: Why Most Investors Feel Worse Than Nifty

 Nifty vs. Broader Market – A Hidden Reality

Exactly one year ago, on 26th September 2024, the Nifty 50 hit an all-time high. Since then, the benchmark index has slipped only about 5.5%, creating an illusion of relative stability.

But beneath the surface, the broader market tells a different, harsher story—one that explains why most retail investors are feeling far worse than what the headline index suggests.

 The Numbers Tell the Truth

• Out of 750 listed stocks, only 245 delivered positive returns, while a striking 485 stocks are in the red.
  
  
• Twenty stocks were listed after September 2024 and were therefore excluded.
  
  
• Median return: -11.56%
  
  
• Average return: -6.25%
  
  

This gap between the Nifty's modest 5.5% fall and the median double-digit loss shows how index-level data can mask real investor pain.

Broader Market Damage

The pain intensifies outside the large caps:

• Midcap 150: –5.21%
  
  
• Smallcap 250: –8.67%
  
  
• Microcap 250: –9.00%
  
  

Even worse, 254 stocks have lost more than 20%, compared to just 103 stocks that have gained more than 20%.

 Clearly, the average investor, who typically holds midcaps and smallcaps, has faced significantly deeper losses than the Nifty headline suggests.

 Lesson for Investors

The last year highlights a timeless market truth:

• Indices mask market breadth → A flat Nifty doesn’t mean portfolios are safe.
  
  
• Mindless diversification doesn’t work → Simply adding more stocks or equity mutual funds does not reduce risk.
  
  
• Non-correlated assets are essential → Exposure to gold, silver, or bonds can protect portfolios during equity drawdowns.
  
  

 Key Takeaway

For the average investor, the past year has felt far worse than the Nifty’s mild decline. Protecting wealth requires looking beyond index movements and embracing proper diversification across asset classes, not just by investing in more stocks.