These three large-cap stocks are trouncing the Sensex in 2025—so far

These Three Large-Cap Stocks Are Trouncing the Sensex in 2025—So Far

June 6, 2025 | Mumbai
India’s benchmark stock index, the BSE Sensex, has posted a modest year-to-date gain of 6.2% as of early June 2025, supported by easing inflation, resilient corporate earnings, and renewed global risk appetite. However, amid this steady uptrend, three large-cap stocks have emerged as clear outperformers, significantly outpacing the broader index and drawing heightened investor interest.

These outperformers—Larsen & Toubro (L&T), ITC Ltd., and JSW Steel—are riding on sector-specific tailwinds, strong financials, and long-term strategic positioning. Here’s a look at what’s fueling their rally and what analysts are saying about their prospects.

1. Larsen & Toubro (L&T): Engineering Growth

• YTD Gain: +28%

• CMP (June 6): ₹4,140

• Sector: Infrastructure & Engineering

L&T has delivered a robust performance in 2025, buoyed by India’s infrastructure push under the Union Budget 2025–26, which earmarked a record ₹12 lakh crore for capital expenditure. The company's strong order book and execution efficiency have made it a standout performer.

“L&T is a direct beneficiary of India's infrastructure supercycle. Its order inflow momentum, especially from Middle East and domestic high-speed rail, is translating into real revenue,” says Amit Daga, Equity Strategist at Axis Securities.

In its Q4FY25 results, L&T posted a 19% YoY increase in consolidated net profit and maintained its guidance of double-digit order book growth. With exposure to defence, railways, urban infra, and green energy, the conglomerate remains a preferred bet for long-term institutional investors.

2. ITC Ltd.: A Quiet Consumer Giant Awakens

• YTD Gain: +23%

• CMP (June 6): ₹518

• Sector: FMCG & Conglomerate

ITC has continued its re-rating journey in 2025 after a stellar 2024. While the market once considered it a slow-moving stock with a tobacco overhang, the narrative has changed dramatically.

ITC's non-cigarette FMCG business posted a 25% YoY revenue growth in Q4FY25, driven by its packaged food, personal care, and hygiene segments. The company also benefited from volume-led growth and margin expansion amid softening input costs.

“ITC’s diversification strategy is paying off. The market is finally recognising its FMCG scale, profitability, and digital agility. Its hotel business demerger has also unlocked value,” explains Neha Agarwal, FMCG Analyst at JM Financial.

Additionally, ITC’s strong dividend yield (~3.7%) continues to appeal to income-seeking investors in an uncertain global macro environment.

3. JSW Steel: Riding the Metal Wave

• YTD Gain: +21%

• CMP (June 6): ₹921

• Sector: Metals & Mining

JSW Steel has surged ahead of the Sensex in 2025, buoyed by a global resurgence in steel demand, especially from China’s renewed stimulus and India’s real estate and infra boom. Steel prices have remained firm in the first half of 2025, aiding profitability.

In its latest quarterly results, JSW Steel reported a 27% jump in EBITDA, supported by lower input costs and better operating leverage. Analysts also cite the company’s improved debt metrics and capacity expansion roadmap as major positives.

“JSW Steel is well positioned to gain from both domestic demand and export recovery. Its balance sheet deleveraging and tech modernization enhance its long-term value,” says Kunal Shah, Metals Research Head at ICICI Direct.

JSW’s foray into green steel and decarbonisation initiatives also align with ESG-conscious capital flows, adding another tailwind for the stock.

Market Context: Sensex’s Slower Climb

While these three large-caps have significantly outperformed, the broader Sensex’s 6.2% gain is still commendable amid global volatility. Several blue-chip names like HDFC Bank, Infosys, and Reliance Industries have traded sideways in 2025, mainly due to valuation pressures, margin headwinds, and global macro uncertainties.

Meanwhile, mid-cap and thematic funds are also pulling investor interest, but volatility in global commodity prices and geopolitical tensions have made large-caps more attractive from a risk-reward perspective.

Investor Outlook: Quality, Earnings & Thematic Bets

With India's long-term growth story intact, investors are increasingly rotating into quality large-caps with visible earnings triggers and sectoral momentum. Infrastructure, manufacturing, and consumer staples remain high-conviction themes.

“Large-cap outperformance in a structurally growing economy is a sign of maturing investor preference. Stocks like L&T, ITC, and JSW Steel show that balance sheet strength and sectoral alignment matter more than ever,” notes Shweta Mehta, Fund Manager at Mirae Asset.

Going forward, analysts recommend a selective approach, focusing on companies with sound corporate governance, healthy order books, and expansion visibility.