The Indian stock market witnessed significant volatility in the first half of the current financial year (H1FY26) on Trump tariffs, foreign capital outflow and stretched valuations.

Equity benchmark, the Nifty 50, gained nearly 5 per cent in H1FY26, while the broader index, Nifty 500, rose 6.5 per cent during the period.

However, defying cautious market sentiment, as many as 22 stocks in the Nifty 500 index surged by more than 50 per cent in H1FY26.

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Netweb Technologies and Gujarat Mineral Development Corporation (GMDC) are the two stocks that gained 141 per cent and 126 per cent, respectively, in the first half of the year. They were followed by GE Vernova T&D and Force Motors, which gained 91 per cent and 86 per cent, respectively.

Shares of Authum Invest (up 78 per cent), Delhivery (up 76 per cent), and HBL Engineering (up 72 per cent) gained over 70 per cent each in H1FY26.

Stocks such as Syrma SGS Tech (up 67 per cent), JM Financial (up 66 per cent), Tata Investment Corporation (up 65 per cent), L&T Finance (up 63 per cent), and Eternal (up 62 per cent) jumped over 60 per cent each during the period under review.

RBL Bank (up 60 per cent), Aditya Birla Capital (up 58 per cent), Maharashtra Scooters (up 54 per cent), Choice International (up 53 per cent), CCL Products (up 52 per cent), Hyundai Motor (up 51 per cent), Data Pattern (up 51 per cent), Garden Reach Shipbuilders and Engineers (GRSE) (up 50 per cent), Nippon Life India Asset Management (up 50 per cent), and Godfrey Phillips (up 50 per cent) were also among the stocks that rose over 50 per centduring H1FY26.

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While the first half of the year has seen muted gains, hopes are high that the second half of the year (H1FY26) will be better due to policy support, monetary easing and earnings revival.

“The effects of policy measures like relief given in the income tax during the budget presentation, RBI slashing interest rates by 50 basis points (bps) and the recent announcements of major cuts in the GST rates will start trickling into the system from the second half (H2) of FY26 and it should begin impacting positively the corporate performance and its profitability going ahead,” Jimeet Modi, the founder and CEO of SAMCO Group, told Mint.

Pranab Uniyal, Head – HDFC Tru (Investment Advisory, HDFC Securities), believes stronger earnings growth, moderate valuations, interest rate cuts and GST rationalisations are the key tailwinds for the Indian stock market.

He believes the earnings downgrade cycle has largely bottomed out.

“We expect earnings growth to pick up in certain large sectors, such as banking and consumer staples, over the next six months. GST cuts could help auto and consumer durables earnings. Some reasonable ideas can also be found in mid- and small-cap stocks, but investors should rely on strong bottom-up research,” said Uniyal.

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Disclaimer: This story is based on data from Capitalmarket. The story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.