Sector performance and Nifty drawdowns from 52-week highs

When sectors behave like a typical Indian monsoon, some get heavy showers while others see a dry spell. Our sector analysis for the latest quarter tells that story, with clear winners like Telecom Services, Oil & Gas and Banking, and meaningful laggards in areas such as Retailing, Hotels, FMCG and Healthcare. 

What the charts show 

On the positive side, Telecom Services tops the list with an impressive quarter‑on‑quarter gain of about 11.5%, followed by Oil & Gas at 10.6% and Banking & Finance at 7.5%. Software & Services, Metals & Mining and some cyclical pockets like Forest Materials and Hardware also show steady single‑digit growth. 

On the weaker side, the deepest cuts appear in “Others” at around ‑16.7%, Retailing at ‑12.8% and Hotels at ‑12.2%. FMCG, Healthcare, Chemicals and Media show mid‑single to high‑single digit declines, while sectors such as Transportation, Realty and Utilities are mildly negative. 

Why these sectors are shining 

Telecom Services is benefitting from strong data usage growth, tariff rationalisation and high operating leverage, so even a small rise in revenue boosts profits sharply. Oil & Gas is riding on robust domestic demand, better refining margins and continued capex, which support both earnings and sentiment. 

Banking & Finance is enjoying healthier credit growth, lower credit costs and rising retail lending, so quarterly profit growth has stayed strong. Software & Services and Metals & Mining reflect a mix of global demand recovery, weaker commodity headwinds and improved pricing power in select names. 

Why some sectors are struggling 

Consumer‑facing areas such as Retailing, Hotels and FMCG are facing pressure from uneven discretionary demand, higher competition and, in some pockets, normalisation after a strong post‑Covid recovery. Healthcare and Chemicals are dealing with margin squeeze due to input costs, pricing pressure and a slower global demand cycle. 

Sectors like Cement & Construction, Utilities and Transportation show small negative changes, which often happens when input costs rise, project execution slows or the market books profit after a strong phase in earlier quarters. For investors, this mix of strong gainers and weak laggards is a classic sign of sector rotation at work. 

When A Few Giants Carry the Index: 

Another way to read the market mood is to see how many stocks are trading below their 52‑week highs across indices. For this, we looked at the share of stocks that are down 10%, 20%, 30% and 40% from their peak for Nifty 500, Nifty 200, Nifty 50 and Nifty Small cap (200–500 crore market‑cap bucket). 

Across the Nifty 500, about 75% of stocks are down at least 10% from their 52‑week high as of 10th December, slightly higher than around 70% on 25th November. At the deeper 20% cut, the share has moved from roughly 42% to 46%, and even at the 40% drawdown level, more than 6% of the universe sits well below its peak. 

In the broader Nifty 200 basket, close to 60% of stocks are now 10% or more below their 52‑week high, and roughly 28% are 20% or more lower, which is a small increase over the late‑November readings. Largecaps inside the Nifty 50 look relatively resilient, with only 44% of stocks down at least 10% and none in the 40%‑plus drawdown bucket as of 10th December. 

Large caps inside the Nifty 50 look relatively resilient, with about 44% of stocks down at least 10% from their 52‑week high as of 10th December, around 16% down 20% or more, and none in the 30% or 40%‑plus drawdown buckets, which is a healthier picture than what we see in the broader indices. 

The picture gets sharper in the smallcap slice between NIFTY 200–500 crore market‑cap, where about 84% of names are down at least 10% and more than half are 20% or more below their 52‑week high. Even at a 40% decline from the peak, nearly 9% of these smaller companies are still in deep correction territory, which shows how much more volatile this segment can be. 

You can use these numbers as a risk thermometer: when a high share of stocks trades far below their highs, it often signals stress and dispersion, so stock selection and position sizing matter much more than index levels alone. And if your portfolio is heavy in the mid and smallcap pockets, this kind of drawdown lens tells you whether your allocation still matches your risk capacity before you add more exposure. 

What this means for your equity portfolio 

For a long‑term investor, such quarter‑wise charts are like a scorecard, not a verdict. They show where the earnings momentum is today, so they can help you decide which sectors deserve more homework and which ones need patience or reduced exposure. Chasing the top performer of the last quarter can feel tempting, but history shows that leadership often changes as the economic cycle moves, interest rates shift and government policies evolve. 

Conclusion

To sum up, quarterly sector charts are a useful compass, but real wealth creation comes from disciplined allocation, endurance across cycles and unemotional rebalancing in line with your goals. Used well, these charts can help you act like a thoughtful business owner across sectors rather than a trader jumping between hot tips. 

Maxiom’s philosophy emphasises diversified exposure across sectors, robust risk testing for drawdowns and periodic rebalancing so your portfolio does not depend on one monsoon cloud alone.