Top 3 Capital Market Stocks Fall Up to 40%: Should You Buy the Dip?

The Indian capital markets demonstrate considerable growth in the last few years, primarily because of the record openings of demat accounts, inflow of FDI, and the capital and financial accounts healthy surplus. Companies in the capital markets—including stock exchanges, brokers, and investment banks—are not only central to this but are also facilitating the trading along with managing the funds and finally assisting the businesses in raising capital.

However, not all stocks are taking off in this context smoothly. Three major capital market stocks have been subject to a significant correction, dropping as much as 40% from their highest 52-week prices. We need to get a bit deeper to understand this better.

1. Angel One Ltd

Established in 1987, Angel One is a full-service retail broker in India and one of the largest ones. Mentioned as a top broker in the area of online discount broking and as a provider of comprehensive investment services, it is revealed that the stock has plummeted from its peak of ₹3,502.6 (Dec 2024) to ₹2,276 (7th Oct 2025), marking a steep decline of 35%.

Part of the decline was because of Sebi’s suggested consultation on weekly derivatives contracts, which got brokers and exchanges arguing for the continuity aspect rather changing tactics. Moreover, promoter holdings sank from 35.55% in March 2025 to 28.97% in June 2025. On the other hand, Angel One is going for the diversification of the product range strategically to keep the positive trend in the future.

2. Indian Energy Exchange Ltd (IEX)

IEX, the foremost Indian electricity price discovery platform, which has had its shares prices gone down from 215 (the highest price of the last year) to 142.1, which refers to a decline of 33% in the total price.

The drop in the price is due to CERC’s proposed market coupling reform, which can often permanently reduce IEX’s near monopoly in price discovery by unifying bids across all platforms. The IEX has already lodged an appeal against this ruling, yet the gradual implementation is expected to start in January 2026.

Nonetheless, the situation is not all bad, as IEX's leadership has analyzed the market conditions and the company's potential and has identified the following growth drivers: increasing the market-based procurement, selling higher quantities in real-time and green energy trading, and the growing electricity sector which could all be the basis for long-term profits.

3. KFin Technologies Ltd

KFin Technologies, the financial services platform relying heavily on technology, has seen its stock price cut by almost 36% moving in the direction from its peak of ₹1,640 to ₹1,051.

The trough followed an unhappy first quarter of 2026 with sluggish local mutual fund growth at the rate of only 3% and drastic falls in the issuer and international solutions segments of 22% and 11% respectively. Moreover, the company's very margins experienced shrinkage across all segments. The promoter's ownership fell from 32.95% to 22.9% from the end of March through mid-June 2025.

The company is channeling the funds into upgrading its technology infrastructure to become more agile and responsive to clients which in turn may support the stock price recovery over time.

Should You Buy the Dip?

The short term volatility notwithstanding, Indian capital markets continue to be structurally sound. The continuous growth in the number of demat accounts, the ongoing technological innovation, and the adoption of new financial habits indicate the existence of long-term growth opportunities.

Investors would be wise to:

Check on the fundamentals and the quality of the management

Keep an eye on the regulatory changes that are taking place

Do a valuation evaluation before investing in the stock

On the positive side: These dips might be long-term buying opportunities but the short-term volatility and the changes in policies require a cautious approach.

Disclaimer: This article is meant to relay information only. It is not intended as a stock recommendation. It is always advisable for investors to seek the opinion of certified financial advisors before making any decisions.