Top 3 Capital Market Stocks Down Up to 40% From 52-Week Highs

Over the past few years, Indian capital markets have been on a strong growth trajectory, driven by a record surge in demat accounts, robust FDI inflows, and a healthy surplus in both capital and financial accounts.

This dynamic environment is opening up exciting opportunities for investors and businesses alike. Capital market companies in India are well-positioned to ride this momentum.

These include stock exchanges, broking firms, and investment banks. These are the companies that facilitate trading, manage funds, and help businesses raise capital.

In this article, we will take a closer look at capital market companies that have seen their stock prices drop as much as 40% from their 52-week highs.

These stocks are selected from the Nifty Capital Market index, based on the maximum fall in their values. The list has been selected from the Nifty Capital Market index, based on the maximum fall in their values from their 52-week highs.

#1 Angel One

First on the list is Angel One.

Established in 1987, Angel One stands as one of India's largest full-service retail brokers. It specialises in online discount broking services. The company offers a comprehensive range of investment and trading services, including stock and commodity broking, investment advisory services, and more.

The stock hit its 52-week high of Rs 3,502.6 on 9 December 2024. However, as of 7 October 2025, it had declined to Rs 2,276 intraday, a 35% drop.

In September 2025, shares of India's capital market stocks, including Angel One, tumbled following reports that the securities market regulator was likely to issue a consultation paper on potentially ending weekly derivatives contracts.

However, on 7 October 2025, sources informed CNBC-TV18 that SEBI had received a large number of representations regarding the weekly options expiry.

Brokers are reportedly advocating for its continuation, and both exchanges-BSE and NSE-are expected to support the extension.

In addition to market developments, Angel One has been experiencing a steady decline in promoter holdings. The most notable reduction occurred in June 2025, when promoter ownership fell from 35.55% in March 2025 to 28.97%.

Going forward, the company plans to grow through strategic diversification into new business segments.

For more details, see the ANGEL ONE company fact sheet and quarterly results.

#2 IEX

Next on the list is IEX.

The IEX is an Indian electronic system-based power trading exchange.

It is India's premier nationwide automated trading platform for the physical delivery of electricity, renewable energy, and certificates.

From its 52-week high of Rs 215 on 9 June 2025, the stock is currently trading at Rs 142.1 intraday on 7 October 2025, reflecting a decline of around 33%.

The sharp decline comes after India's power regulator proposed a major reform of introducing market coupling to restructure the electricity pricing mechanism.

Market coupling is an economic model used in energy markets to create a single, uniform price for electricity across different trading platforms.

Under this mechanism, bids and offers collected from all power exchanges are aggregated and cleared together, resulting in one market-clearing price for the day-ahead or real-time markets.

Currently, IEX acts as India's leading platform for spot electricity price discovery.

For IEX, the proposed market coupling reform could be a game-changer, not in a good way.

The market thinks that once coupling kicks in, IEX's near-monopoly in price discovery could be history. Right now, it sets the benchmark price in India's spot power market.

But after coupling, all platforms will feed into a common price engine. IEX would then become just one of several bidding windows-stripped of the power to determine prices.

Furthermore, in July 2025, the Indian Energy Exchange (IEX) appealed against the Central Electricity Regulatory Commission's (CERC) order on market coupling. The appeal was filed with the Appellate Tribunal of Electricity (APTEL).

IEX argues the order is arbitrary and contradicts power market norms. However, CERC had directed the phased implementation of market coupling from January 2026.

Looking ahead, IEX seems well-placed to ride several positive trends.

As more power buyers turn to market-based procurement and volumes grow in real-time and green energy segments, the company stands to gain.

For more details, see the INDIAN ENERGY EXCHANGE company fact sheet and quarterly results.

#3 KFin Technologies

Last on the list is KFin Technologies.

KFin Technologies is a leading technology-based financial services platform.

It offers diversified services to asset managers and corporate issuers across asset classes in India. The company also provides investor-based solutions from transaction origination to processing for mutual funds and private retirement schemes.

It has a pan-India network of 182 service centres. Apart from a strong domestic presence, the company has a presence in 10 countries, including Malaysia, Hong Kong, and Middle Eastern countries.

From its 52-week high of Rs 1,640 on 30 December 2024, the stock is currently trading at Rs 1,051 intraday on 7 October 2025, reflecting a decline of around 36%.

The stock came under pressure following a weak June 2025 quarter, in which the company missed estimates on most parameters.

Segment-wise, the domestic mutual fund business managed a modest 3% growth over the March quarter, while the issuer solutions and international solutions segments saw declines of 22% and 11%, respectively.

Margins came under pressure across all three segments, with the steepest fall of 1,581 basis points in international solutions, followed by issuer solutions and the domestic mutual fund business, which contracted by 885 and 431 basis points, respectively.

SIP live folios also declined 18.4% quarter-on-quarter, dropping from 43.4 million (m) in March to 35.4 m in June.

Adding to the pressure, promoter stake has been steadily declining since December 2023, with the sharpest reduction seen between March and June 2025-from 32.95% to 22.9%.

Going forward, the company plans to invest in technology infrastructure to make it more agile and responsive to evolving customer needs.

For more details, see the KFIN TECHNOLOGIES company fact sheet and quarterly results.

Conclusion

According to Equitymaster, Capital Markets Sector Analysis Report, the Indian capital market is going through an exciting transformation, driven by strong growth, technological innovation, and shifts across various service areas.

The surge in demat accounts shows that more and more investors are getting involved, and savings are becoming increasingly financialised.

This trend is expected to give a boost to capital market companies' performance in the coming years, making the sector one to watch for the long term.

However, investors should remain mindful of market volatility and regulatory changes that could impact short-term performance.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...