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The year 2025 has been emotionally difficult for many stock market investors. Even though the Nifty index has touched new lifetime highs, most investors feel unhappy because their portfolios are still in the red.

Market expert Meherboon Irani, in conversation with Zee Business managing editor Anil Singhvi, says that nearly 75 per cent of Nifty stocks are trading at least 10 per cent below their 52-week highs.

If we look at the broader market, almost 90 per cent of listed companies are well below their peak levels. This clearly shows that the market is facing “fatigue.” According to Irani, market fatigue happens when investors lose patience. Portfolios do not perform, confidence drops, and people start selling out of frustration.

He explains an important idea called the “impact factor.” In a tired market, even small selling by big investors or funds can push a stock down by 3–4 per cent. This fall creates more fear, leading to further selling. However, Irani believes this fear creates opportunity. Many good-quality stocks have now fallen to levels where the downside risk is limited.

He also points out that the pressure in 2025 did not come only from foreign investors selling. Promoter selling, private equity exits, and aggressive IPO pricing added a large supply of shares in the market.

“In the past, most IPOs used to leave some money on the table for investors. But in the last one to two years, very few IPOs have rewarded retail investors,” Irani says.

Promoters and private equity funds sold at high prices, while mutual funds and retail investors became buyers.

Looking ahead to 2026, Irani is optimistic about the broader market. He believes that selected mid-cap, large mid-cap, and even some small-cap stocks can deliver much better returns than frontline indices.

“In 2026, sectors will not matter as much. Individual stocks with strong fundamentals and good earnings will be rewarded,” he explains.

He also gives an honest warning to investors who bought the wrong stocks at high valuations. Holding on just to recover the buying price can be a mistake.

“If you know you are wrong, do not be afraid to exit at a loss and reinvest in better opportunities,” Irani advises.

Indian companies have built an IPO pipeline of more than Rs 2.55 lakh crore for the coming year. For 2026, 88 companies have already received SEBI approval to raise about Rs 1.16 lakh crore, while 104 more companies are waiting for clearance to raise another Rs 1.4 lakh crore.

In 2025 alone, companies filed 244 draft red herring prospectuses, much higher than 157 filings in 2024.

However, strong IPO numbers have not translated into strong investor returns. Almost half of the more than 300 companies listed this year are trading below their issue price.

Promoters, private equity, and venture capital investors have sold shares worth over Rs 1.1 lakh crore through offers for sale (OFS), adding to supply pressure in the market.