Nifty at All-Time High… But Most Portfolios Are Still Bleeding. Here’s Why

The Nifty 50 has been hitting fresh all-time highs, creating an impression that the market is in a broad-based rally. But for most retail investors, their portfolios tell a very different story. Even as the benchmark index celebrates record levels, the broader market continues to struggle, revealing a sharp disconnect between the headline index and the actual wealth creation on the ground.

Why Your Portfolio Isn’t Reflecting Nifty’s Record Highs

Benchmark indices are designed to look strong because they are powered by heavyweight stocks. But when we break down the market beyond the top names, a clearer and more painful story emerges.

From the top 750 stocks by market capitalisation, 716 have been listed for more than a year. Within this universe:

• Only 252 stocks delivered positive returns.
• 464 stocks are in negative territory
• Median return: –10.54%
• Average return: –5.24%
• 268 stocks have fallen more than 20%
• Only 117 stocks have gained more than 20%

These numbers make one thing clear: The rally is extremely narrow.

Heavyweights Are Driving the Nifty, But Everything Else Is Weak

The Nifty’s rise is being held up by a handful of mega-cap stocks. These large companies have significant weight in the index, so even if just a few outperform, the benchmark can hit new highs even when the broader market is in pain.

Meanwhile, the pockets where most retail investors deploy their money, smallcaps and microcaps, have not participated in the rally at all.

• Nifty Microcap 250: –10.04%
• Nifty Smallcap 250: –9.21%
• Nifty Midcap 150: Flat to slightly negative

These segments have corrected sharply from their earlier peaks. Since the Nifty’s previous all-time high, microcaps and smallcaps have been bleeding, dragging retail portfolios lower even as the Nifty climbs.

Why Retail Investors Feel the Disconnect

For an average investor, the Nifty making new highs may give the impression that the market is booming. But portfolio returns depend on breadth, not just the index level.

Right now:

• Breadth is weak
• Participation is narrow
• Most stocks are down.
• Small and micro-cap segments remain under pressure.

This is why your portfolio might be deep in the red even as the Nifty sets new records.

What Needs to Change

For portfolio returns to improve meaningfully, the rally needs to broaden out. More sectors and more stocks, especially smallcaps and microcaps, must participate in the upside.

Until then, the Nifty may continue to look strong on the surface, but the average retail portfolio will not reflect the same strength.