Unlisted Stocks Experience Moderate Decline Amid Broader Market Sell-Off

Unlisted Market Sees Correction as Benchmark Indices Face Pressure

Mumbai, India – March 11, 2025:

The unlisted stock market is witnessing a moderate correction as broader equity markets face significant headwinds. While benchmark indices such as Sensex and Nifty have lost around 4.5% year to date (YTD), the BSE MidCap and SmallCap indices have plunged over 14% and 17%, respectively.

Despite the downturn, unlisted stocks have remained relatively insulated from the extreme volatility seen in the listed space, according to analysts. However, specific high-growth unlisted stocks that surged in 2024 are now facing sharper corrections, reflecting a shift in market sentiment.

Unlisted Stocks See Moderate Losses; Some Experience Steep Declines

While most unlisted stocks have recorded only mild declines, certain stocks have witnessed sharp sell-offs due to their previous gains or sector-specific challenges.

Biggest Losers in the Unlisted Market

• Metropolitan Stock Exchange of India: After surging over 1100% in 2024, the stock has tumbled 40% in 2025 to ₹7.5 per share.
• Matrix Gas Renewables: The stock has declined 31% YTD, following a 6% drop in 2024.
• Motilal Oswal Home Finance: Down 26% so far in 2025, despite gaining 50% last year.
• Hero FinCorp: After an impressive 45% rally in 2024, the stock has lost 25% in 2025.
• Apollo Green Energy: Down 13% YTD, extending its 33% decline from 2024.

Other notable decliners include:

• HDB Financial Services: Down 11% YTD, after a 40% gain in 2024.
• Vikram Solar and Oyo: Each have declined around 10% so far in 2025.
• Cochin International Airport: The stock has dropped 5.4% in 2025, following a 92% surge in 2024.

Mild Corrections Seen in Select Unlisted Stocks

Some unlisted stocks have weathered the market downturn better, recording only marginal declines:

• Capgemini Tech: Down 7.5% YTD, after gaining 24% in 2024.
• HDFC Securities: Has also fallen 7.5% in 2025, after a 1% rise last year.
• API Holdings: Down 7.2% this year, extending its 15% decline in 2024.
• Orbis Financial Corp and Chennai Super Kings: Both stocks have slipped 4.5% YTD.
• NSE (National Stock Exchange): After an impressive 143% gain in 2024, NSE has lost just 3% so far this year, reflecting resilience in exchange-related stocks.

Selective Gainers Defy Market Trend

Despite the broad-based market correction, a few unlisted stocks have managed to generate positive returns in 2025:

• Nayara Energy: Up 16% YTD, following an extraordinary 346% rally in 2024.
• NCDEX (National Commodity & Derivatives Exchange): Has gained 5% YTD, recovering slightly from its 27% decline last year.

Experts Weigh In on Market Trends

According to Manan Doshi, Co-founder of UnlistedArena.com, the current correction in unlisted stocks reflects a shift in investor interest across sectors.

“Solar and green energy stocks were market darlings in previous quarters, but they are now facing selling pressure. In contrast, investor focus is increasing on stocks related to exchanges and financial services.”

Doshi also noted that trading volumes in the unlisted market have significantly declined, with investors adopting a wait-and-watch approach amid market uncertainty.

Broader Market Sell-Off Driven by Global and Domestic Factors

The weakness in unlisted stocks is part of a larger market downturn that has affected Indian equities in 2025. The Sensex and Nifty have each declined by 4.5% YTD, while BSE MidCap and SmallCap indices have plunged 14% and 17%, respectively.

Market experts attribute this sell-off to:

• Foreign Institutional Investor (FII) Selling: Rising concerns over elevated valuations and a slowing economy have prompted FIIs to pull capital from Indian markets.
• Weak Earnings Growth: Many companies are struggling to meet growth expectations, leading to a reassessment of stock valuations.
• Global Trade Wars: Following Donald Trump’s re-election in the U.S., global markets have seen rising tariff tensions, impacting investor sentiment worldwide.

Unlisted Market Remains Less Volatile but Faces Liquidity Challenges

Despite the correction, the unlisted market remains relatively stable compared to the listed market due to its lower trading volumes and limited accessibility.

According to Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, this lack of liquidity reduces volatility but also poses challenges for investors:

“Unlike the listed space, the unlisted market sees lower price swings. However, liquidity remains a major issue, making quick exits difficult. Investors must have a long-term approach before entering this space.”