Over the past few months, Indian equities have undergone a meaningful correction, with the Nifty 50 declining nearly 14.5% from its peak. Much of this weakness has unfolded amid rising geopolitical tensions in the Middle East, adding to global risk aversion. Such drawdowns naturally create discomfort, they test sentiment and shake conviction. But they also serve another purpose: they reset valuations and quietly build the foundation for future opportunities.

From where I stand, this phase is less about panic and more about perspective.

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One of the most insightful indicators we track is the Sensex-to-Gold ratio, which compares equities to a traditional store of value. As of March 2026, this ratio has moved back to its historical support levels that, in previous cycles, have often preceded phases of equity outperformance.
I would refrain from making bold calls, but when a time-tested relative valuation metric signals that equities are becoming inexpensive versus gold, it deserves attention.

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Majority of NSE Stocks Trade Below 52-Week Lows

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Note: The 52-week low count is presented on a net basis (i.e., after deducting stocks hitting 52-week highs) across all NSE-listed stocks

The second signal comes from market stress indicators. In March 2025, over 927 stocks across the NSE universe hit their 52-week lows, reflecting widespread pessimism. What followed was telling: the Nifty delivered 5% returns in one month and 12% over three months.
However, it is equally important to acknowledge that extremes do not always mark immediate bottoms. In March 2020, when over 1,000 stocks hit 52-week lows, the market continued to correct in the near term before eventually recovering.Today, in March 2026, we are witnessing a similar—if not deeper—setup, with nearly 948 stocks at 52-week lows. This suggests that while the market may still remain volatile in the near term, such extreme readings have historically created favourable forward return probabilities over a slightly longer horizon.

Majority of NSE Stocks Trade Below Key Moving Averages

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Note: Percentages represent the proportion of stocks trading below their respective DMAs across NSE-listed stocks.

Market breadth further reinforces this view. Currently, over 81–89% of stocks are trading below their key moving averages (4, 20, and 50 Week MA). These are not ordinary levels they reflect broad-based capitulation and deep pessimism.

From a mean-reversion perspective, such extreme compression in breadth has typically been followed by phases of normalization and recovery rather than extended declines.

When we step back and connect these dots

• Relative valuations turning favourable (Sensex vs Gold)
• Majority stocks trading near 52-week lows
• Majority stocks trading below their key moving averages

The data collectively suggests that the risk-reward balance is gradually tilting toward the upside.

That said, it is important to remain grounded.

Geopolitical uncertainties and global macro risks remain key overhangs. Whether it is rising bond yields, policy shifts, or international conflicts, these factors can influence markets in the near term and potentially delay recovery. At the same time, risks to corporate earnings, amid margin pressures, global slowdown concerns, and inflation, remain an important variable to monitor.

So, to be clear, we are not calling it a market bottom. But what we are observing is equally important: The correction has meaningfully improved valuations, and the weight of evidence is turning constructively in favour of equities.

A Message to Investors

Corrections are uncomfortable by design; they create doubt and test patience. But historically, some of the most rewarding investment decisions are made during such phases, when sentiment is weak but underlying data begins to stabilize.

The signals today are not opinions, they are reflections of market behavior. Stay disciplined. Stay diversified. Avoid the urge to time the exact bottom.

If your investment horizon extends beyond the near term, the current environment calls for measured, systematic participation, not reactionary decisions. Because in markets, opportunity rarely announces itself loudly. It usually emerges quietly hidden within the noise.

In a video interview with PTI, Bihar Energy Secretary Manoj Kumar Singh said, “We are planning to list our transmission company on the stock exchange and have issued an Expression of Interest (EoI) to onboard merchant bankers.”

Bihar State Power Transmission Company Ltd (BSPTCL) is set to become the first state-owned transmission utility to go public, with the listing proposed on the NSE.

Singh noted that the size of the issue will be determined after the merchant bankers are appointed. “Once they are onboard, they will guide us through the IPO process and assess how much capital can be raised from the market,” he said.

Explaining the rationale, Singh described listing as a natural step for a profitable business. “Our transmission company has been consistently profitable for over a decade. We want the public to also share in this growth journey,” he added.

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The funds raised from the IPO will be used to strengthen Bihar’s transmission infrastructure to meet future power demand. BSPTCL has outlined an ambitious expansion plan worth Rs 16,194 crore to enhance network capacity, improve intra-state transmission corridors, and handle increasing power loads.
The plan also includes upgrading substations and high-voltage transmission lines to reduce losses, improve grid reliability, and support the integration of new generation capacity, including from renewable energy sources.According to Singh, Bihar recorded a peak power demand of around 8,800 MW last year, which is expected to rise to about 9,500 MW this year.

By 2030, peak demand is projected to cross the 13,000 MW mark, driven by growth in commercial and industrial establishments.

While Singh did not specify a timeline for BSPTCL’s listing, he indicated that the government may also consider listing its power distribution companies — North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) — in the future.

“We will begin with the transmission company. Once its revenue stream stabilises, we may consider listing the discoms in the next two years,” he said.

Providing an overview of the sector’s performance, Singh highlighted that both the transmission and distribution companies are financially strong, with significantly lower AT&C losses (Aggregate Technical & Commercial losses) compared to many other states.

An improvement in AT&C losses indicates improved operational efficiency, higher financial viability, and a narrower gap between the cost of supplying power and revenue earned (ACS-ARR gap).

For FY25, BSPTCL reported a total income of Rs 1,968 crore and a profit after tax (PAT) of Rs 286 crore. NBPDCL posted a total income of Rs 17,448 crore with a PAT of Rs 1,339 crore, while SBPDCL recorded a total income of Rs 19,108 crore and a PAT of Rs 665 crore.