Around one-third of largecap stocks delivered returns above 20% during the year. Notably, six stocks—Shriram Finance, TVS Motor Company, Maruti Suzuki India, Eicher Motors, Vodafone Idea, and Canara Bank—rallied more than 50% in less than twelve months. This impressive performance highlights renewed investor confidence in these established companies, many of which had been in consolidation phases for several quarters.
Trendlyne’s SWOT analysis reinforces this optimism. The top-performing six stocks show strong overall strengths that far outweigh their weaknesses, suggesting that these companies are well-positioned for sustained performance in the near term.
Aakash Shah, Technical Research Analyst at Choice Equity Broking, explains, “From a technical standpoint, the resurgence of largecaps reflects a clear rotation after extended midcap and smallcap outperformance. Largecap indices broke above key resistance levels after forming consolidation bases, with sustained price action above the 200-day moving average and rising 40-week averages—signalling institutional accumulation.”
Shah adds that this shift points to a rotation from high-beta, high-risk stocks toward lower-volatility, structurally stronger trends. Technically, the trend remains constructive as long as largecap indices continue forming higher highs and higher lows on weekly charts. Momentum indicators such as RSI remain bullish but not overbought, supporting the potential for continuation into CY26.
Automobile: Maruti Suzuki and Eicher Motors continue to demonstrate strength, trading above rising long-term averages and forming bullish continuation patterns.
Financials: Shriram Finance holds higher support levels with volume-backed gains, reflecting steady investor interest.Capital Goods: Companies like L&T have broken out of long consolidation ranges, signalling potential growth.
Consumption: Select names, including ITC and Varun Beverages, are displaying early signs of trend reversals, hinting at renewed momentum.
Also read: India Inc sees first earnings upgrade after a gap of 5 quarters
Overall, CY25 marks a return of confidence in largecaps, with strong technical and fundamental support suggesting that these stocks may continue their upward trajectory.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)