Nifty 50: Investors defy analysts as downgraded stocks rally, upgraded ones dip.

• A significant disconnect is observed between brokerage recommendations and Nifty 50 stock performance, with nearly 40% of the index moving contrary to analyst expectations.
• Several stocks downgraded by brokerages, such as Hindalco Industries and Bajaj Finance, have rallied sharply, at times outperforming the benchmark index.
• Conversely, many upgraded counters, including major IT firms like TCS, Wipro, and Infosys, have declined despite improved ratings.
• Experts attribute this divergence to factors like valuation views, growth prospects, and analysts being slow to revise target prices compared to investor trends.

Why It Matters: Analyst stock ratings often disconnect from Nifty 50 performance, affecting investor choices.