Nifty 50 Top Losers 2024: Investors’ Worst Nightmares

The year 2024 has been a mixed emotion for Indian stock market investors, with some stocks surging to new heights while others faced significant setbacks. Among Nifty 50 stocks, a few stocks have notably struggled, delivering disappointing returns to its investors. This raises a question: Why did these stocks fall, and what insights the research firms are offering about their future?

IndusInd Bank

The biggest disappointing nifty 50 top losers stock of the year, The IndusInd Bank, delivered unimpressive Q2FY25 results that led the stock to decline by more than 20% in October alone. Over the year, its performance has consistently fallen short, leaving investors disheartened.

The stock has never crossed its 52-week of 1,694 which was set in January Month, Since then, the stock has steadily declined to Rs 960 to date—making it lose around -40% over the year.

However, In late October, Prabhudas Lilladhar, Motilal Oswal, and Emkay Global Financial Services gave the buy rating with targets of Rs 1,600, Rs 1,500, and Rs 1,650, respectively.

Asian Paints

Once upon a time, the favourite stock of the Investors has been discouraging them for the last few years. Asian Paints, The 2nd nifty 50 top loser in this calendar year has failed to impress the investors yet again.

Asian Paints emerged as one of the key drags on the Nifty 50 during the recent market downturn. Over the past three months, the stock has declined by more than 30%, dropping from its opening price of ₹3,403 on January 1, 2024, to ₹2,281 as of now. This steep decline in the stock has been caused by weak consumer demand, and increased competition in the paint sector.

As per the November reports, The research firm, Motilal Oswal has stayed ‘Neutral’ with a target of 2,650 on the stock. While Sharekhan has given the ‘Hold’ Rating with a target of 2,779. However, JP Morgan changed their view to “underweight” from “neutral”, setting the target at Rs 2,400 from Rs 2,800.

Related: Nifty 50 Top Gainers 2024: These Stocks Gave 50%+ Returns!

Nestle

Another company on our losers list, the FMCG giant Nestle, has been unsuccessful this year. The company’s poor sales throughout the year have kept the investors away.

Nestle reported only 1% sales growth (against 6% estimates) in 2nd quarter, which is way below the last eight quarter average sales of 10%. The slowdown in sales growth is heavily impacted by lower demand and higher commodity prices.

The stock price has also been affected by the lower sales growth. the price which used to be at Rs 2,658 on 31st December last year, has now declined by 18% and is currently trading at Rs 2,150 as of 26 December.

The company’s future outlook has failed to impress brokerage firms, many of which have issued neutral ratings following the Q2 results. As we wait to see how Nestlé plans to recover, the focus will remain on its strategies to regain sales growth and rebuild investor confidence.

Titan

Another Tata group company, Titan company has given negative returns to its investors for the first time in the last 8 years. The Premium watchmaker’s debt has seen to be rising over the period, Which has made heavy impact on its profit and loss account.

Where, the company’s interest payment has increased steadily since the last few quarters. This caused the company to compromise in its profit, During Q1, and Q2 of FY25, Company’s Net Profit declined by 5%, and 23% respectively.

Additionally, The rising debt has made investors remain cautious about the stock and its effect can be understood through the stock decline. At the start of the year, the stock price was trading at Rs. 3,689, is now ended the year with a decline around 11% at the price of Rs. 3,253.

However, the brokerages have mixed views about the stock’s future. Morgan Stanley sets the rating to “Equal-Weight” and cuts the target price from “3,570” to “3,532”. Additionally, Jefferies gives a “hold” rating with a target of Rs. “3,400”. And at the end, Goldman Sachs, Gave it a “Buy” rating with a target of Rs. “3,650”. (Source)

Adani Enterprises

During the year, Mr. Adani faced multiple allegations related to corporate governance and financial disclosures, often highlighted by global media and regulatory investigations. These events triggered significant movements in Adani Group stocks, as investors reacted cautiously and began offloading their holdings.

The controversies not only impacted Adani Enterprises but also caused a broader decline across other group companies. This effect is evident in the stock price, which is currently trading at Rs. 2,528—down more than 11% from Rs. 2,852 earlier this year.

Conclusion

In summary, the Nifty 50’s top losers of 2024, including IndusInd Bank, Asian Paints, Titan, Adani Enterprises, and Nestle, highlight the challenges faced by Indian investors in a year marked by mixed market performance. Factors such as disappointing earnings, regulatory concerns, weak consumer demand, and rising competition have weighed heavily on these stocks, leading to significant declines. While research firms have provided a range of outlooks, from cautious optimism to bearish views, these stocks remain under watchlist as investors await strategic recoveries. The year serves as a reminder of the importance of diversification and informed decision-making in navigating volatile markets.