Indian equity markets have corrected significantly since February 2020 due to headwinds from the COVID-19 outbreak across multiple countries. After hitting a low of 7,610 on March 23, 2020, the Nifty bounced back more than 29 percent from its lows.

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However, the index is still down around 15 percent on a year-to-date (YTD) basis. Only a handful of stocks have helped in the recovery.

In a recent report, Motilal Oswal mentioned that polarisation has continued unabated between the Nifty top 10-15 and the other Nifty constituents. Even during this COVID-19 led correction, the top 15 have outperformed the others, declining only 11 percent while the others fell even more.

In 2020 YTD as well, only 11 stocks of the Nifty50 index have given positive returns. Stocks like Cipla, Dr Reddy's, Bharti Airtel, RIL, Britannia, Nestle, and Shree Cements have given double-digit returns in 2020, while the remaining have underperformed.

Some stocks like IndusInd Bank, Tata Motors, SBI, Axis Bank, Zee, Coal India, ONGC, Bajaj Finserv, ICICI Bank, Hindalco, and Tata Steel have fallen between 30 percent and 65 percent in 2020.

As per analysts, the divide between the top 10 stocks and the bottom 10 provides a clear example of the ongoing polarisation in the Indian markets. They add that most investors have been investing in 'safe stocks' with strong balance sheets. It is vital to stick with quality and diversify a portfolio because the chances of aggregate equity valuations to be capped post-COVID-19 is higher, Barclays said in a report.

In the broader markets, this divide is sharper. On a year-to-date (YTD) basis, less than 30 stocks were positive while the remaining were in the red.

Stocks like Escorts, Ajanta Pharma, Muthoot Finance, Coramandalam International, and IDBI Bank jumped between 30-65 percent, while Future Retail, Varroc Engineering, Canara Bank, PNB Housing, RBL Bank, Aditya Fashion, City Union Bank, Indian Hotel, M&M Finance, Edelweiss, Indiabulls Ventures, Adani Power, Union Bank of India, IDFC First Bank, and Prestige Estate shed over 40 percent each.