2/5/2025, 10:54:02 am

Everyone’s watching the index—but that’s not where the action is

India’s equity market is shifting toward selective stock picking over index trends. The Nifty 500 shows a widening gap between index returns (-6.8% in Q4 FY25) and median stock performance (-12.8%), driven by concentrated earnings growth in fewer companies. Structural factors like tighter liquidity, valuation compression, and earnings visibility are narrowing market breadth.