In the last 15 months, broader markets are down around 15-20%. What’s good though is that investor’s sentiment and participation is also down as reflected by Google trends data, Avg. daily turnover data of NSE and the latest Market Breadth data.
It’s a great time for stock picking and portfolio restructuring. Those who will invest in growth stocks trading at reasonable valuations today, will probably make great returns on portfolio over the next 3-5 years.
Let’s look at the Market Breadth Data of Jan 2026, how it compares with past periods and what cues can one take from the same.
Before that: Here’s the list of new stock recommendations made recently:
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Market Breadth Data Jan 2026
(As posted by Mr. Nooresh Merani)
This is what real corrections look like (beyond index levels).
As of Jan 2026: 59% of all listed stocks are down more than 30% from their 52-week highs
Breakup:
- 36% stocks down >40%
- 8% stocks down >60%
This is not a shallow pullback.
How does this compare historically?
% of stocks down >30% from 52-week highs:
- Jan 2026: 59%
- Mar 2009: 94% (GFC crash)
- Aug 2013: 64% (taper tantrum)
- Aug 2019: 75% (NBFC crisis)
- May 2022: 57%
- Mar 2023: 56%
- Jan 2025: 61%
Current phase is:
- Similar to May 2022 & Mar 2023
- Less severe than 2019
- Nowhere close to 2009 or 2013
In short: Meaningful correction, not a meltdown.
Where is the pain concentrated? – Mostly in small & micro-cap stocks (< ₹10,000 cr mkt cap)
The long-term investor’s lens – Historically, phases like this:
- Don’t feel comfortable
- Don’t feel obvious
- Don’t come with good headlines
But they often create the best risk-reward setups for patient investors.
Especially if your horizon = 3–4 years.
Bottom line – Corrections don’t announce bottoms. They quietly prepare future leaders. This is the phase to research, build watchlists and accumulate selectively.
Hope you found the blog post useful and it added value to your investment decisions. Sign up for more interesting stock ideas and industry notes.
Disclaimer: This is not a recommendation to buy/sell any of the stocks mentioned above. The securities quoted are for illustration only and are not recommendatory.
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