Market in Bear Grip: Why Some Stocks Are Outperforming Despite the Market Weakness

Why are some stocks outperforming when the broader market is under pressure? Often, these divergences are company-specific. Recently, Landmark Cars, TCI Express, and Azad Engineering have been in focus for their outperformance. However, just because a stock is rallying, it doesn’t mean its business is improving.

There are numerous factors affecting the Indian equity market, including geopolitical risks, crude oil prices, foreign portfolio investments, and U.S. federal funds rate. On September 24, 2026, Indian equity market indices crashed, with the S&P/BSE Sensex and Nifty 50 falling by 1.67% and 1.64%, respectively. The decline was across market capitalizations. In such an environment, focus should be on understanding the factors behind the outperformance of individual stocks.

This article examines the recent developments around Landmark Cars, TCI Express and Azad Engineering and explains why investors should distinguish between short-term price momentum, company news and sustainable fundamental improvement.

Why Some Stocks Outperform During Market Weakness

A weak index does not mean every stock must fall by the same amount. Market indices are aggregates, while individual companies respond to their own earnings outlook, corporate announcements, sector trends, valuation and investor positioning.

• Company-specific news: New partnerships, orders, management developments or strategic initiatives can attract buying interest.

• Sector-specific strength: A company may operate in an area receiving stronger investor attention even when the overall market is weak.

• Relative valuation: Stocks that have already corrected substantially may respond differently to new information.

• Low or moderate liquidity: Smaller stocks can experience larger price moves when buying interest increases.

• Technical momentum: Breakouts, volume changes and short-covering can influence prices independently of immediate earnings.

Therefore, outperforming the index is a signal worth investigating, not a standalone investment thesis.

Landmark Cars: Business Update Adds Stock Specific Catalyst

Landmark Cars has recently emerged as a stock of interest in the current market conditions. As an automobile retail and service company, Landmark has exposure to the complete passenger vehicle and related after-sales service, including the retail of high-end and luxury vehicles.

A business update on September 24, 2026, disclosed to the exchanges in terms of Regulation 30, announced a business combination with OLX to set up a joint venture for a phygital (physical and virtual) pre-owned vehicle business.

Pre-owned vehicles, including used cars, continue to gain acceptance in the Indian sub-continent. The joint venture between Landmark and OLX is expected to create a digital and physical integration for the used vehicle market, and improve the overall experience for customers, suppliers and buyers. While such integration and automation has the potential to create value and improve earnings, the outcome is largely dependent on numerous business and operating variables including, but not limited to, pricing, volume and competitive strategies.

Landmark Cars: Fundamentals vs. Momentum

Q1 FY27 results are out for Landmark Cars, which indicates revenue of around ₹1,302.36 crore, with an operating profit of ₹116.89 crore and a net profit of ₹14.55 crore. From the previous year’s corresponding quarter, the company has registered a 22.67% growth in revenues, an 17.99% growth in operating profits and a 212.14% growth in net profits.

When analyzing these financial results, it is important to realize that, as a business, they are cyclical in nature and one quarterly performance should not be exaggerated. There are numerous factors that influence the performance of an automobile retail business including consumer demand, working capital, manufacturing and commercial cycle of business, business financing, inventory, business relationship with manufacturers, business relationship with financial institutions and other financial intermediaries.

Landmark Cars had stated in their business updates that they expect an increase in the number of vehicles sold through their showrooms due to upcoming launches by their OEMs. Cycles in the business of manufacturing and retailing automobiles are an important consideration while analyzing the financial performance of such a business. It should be noted that the market price of a company’s shares should not be assessed based on the expected performance cycles of a company.

TCI Express: A Case of Undetermined Triggers of Relative Strength

TCI Express has moved higher in recent months. According to historical data, the stock was up by about 4% on September 23, 2026, and closed the day at ₹505.60. It was in the range of ₹488.55 and ₹512.45.

There are a number of recent market disclosures by the stock exchanges regarding the promoters of TCI Express. The disclosures included transfers among promoter group companies. These disclosures, however, do not explain the reason for the changes in promoter holdings. It is, therefore, incorrect to attribute changes in promoter holdings of TCI Express to the share price changes.

The reason for the sharp increase in the stock price may be due to a number of reasons including changes in fund managers’ views on the company, technical trading, improving liquidity conditions and other factors including prospects for the company.

What to Track in TCI Express

• Revenue and delivery volume.

• Operating margins and profitability.

• Competitive intensity in the express logistics market.

• Promoter shareholding and disclosed transactions.

• Cash generation and working-capital requirements.

• Management commentary on demand and network expansion.

Investors should also remember that the stock's recent strength does not remove business or valuation risks. The share price was still materially below its recent 52-week high in late September, illustrating why a single strong session should be viewed in the context of the broader trend.

Azad Engineering: Aerospace and Precision Manufacturing

Azad Engineering is a precision manufacturer of components used in the defense, aerospace, and oil and gas industries. Azad Engineering should beneficially import long-term industry and trade cycle trends and carry-over-demand (COD) for the aerospace and defense industries.

The company outperformed the market during the last week of September, especially given its previous performance. Azad Engineering increased by 7.10% on September 18th, but lost 2.27% and 1.29% of its value on the 23rd and 24th, respectively.

Though Azad Engineering performed well in September, COD for the aerospace and defense industries may have limited positive impact on the company’s stock price, as defense spending has been declining. Azad Engineering’s August 2026 management call and September 2026 annual report are recently disclosed by the company. Rakesh Chopdar’s reappointment as Executive Chairman, Ceo and Whole Time Director for another five years was also disclosed.

Why The Aerospace Theme Is Important

For Azad Engineering, the stock market’s short-term emphasis is less relevant when considering the business’s focus on customer relationships, product mix, and profitability in the long term.

The company has notable growth, and while positive, the pace of growth needs to be analyzed in the context of the market’s expectations. A fast-growing company can always underperform as a result of investors’ quick adoption of favorable news about the company.

Short-Term Momentum vs Long-Term Fundamentals

A recent partnership has fueled the bullish case for Landmark Cars. TCI Express has not been as fortunate to find the same catalyst for an upward move. Short term volatility has been the norm for Azad Engineering. A fundamental shift to aerospace and higher end manufacturing was positively received for a time. Recently the market has been concerned about how the company will satisfy even the shortest of terms.

This comparison highlights an important principle: relative strength is not the same as fundamental strength. A stock can outperform because investors are buying an expected future event, while the underlying financial benefits may take quarters to materialise.

What Investors Should Check Before Following the Rally

1. Identify the actual catalyst. Look for an exchange filing, earnings release, order announcement, management commentary or other verifiable event.

2. Check whether the catalyst affects earnings. Not every partnership or announcement has a material near-term financial impact.

3. Compare the stock with its sector. A company may simply be benefiting from sector rotation rather than company-specific improvement.

4. Review valuation. Strong growth can already be reflected in the market price.

5. Study volumes and liquidity. A sharp move in a relatively less-liquid stock can reverse quickly.

6. Separate one-off events from recurring performance. Sustainable revenue, margins and cash flow matter more than a single announcement.

7. Read exchange filings directly. Investors can use the NSE and BSE disclosure platforms to verify company announcements.

For a broader framework, investors can also read our guides on fundamental analysis of stocks and stock market basics in India .

Why Stock Dispersion Increases in Weak Markets

Investors look for better ways to analyze individual stocks in a market where the overall trend is hard to identify. The tendency is to seek out stocks that have clear upside potential or other sources of positive revisions.

Markets can become fragmented, with stock indexes showing overall weakness while individual components exhibit strength. Individual stocks can also show strength and rise to new highs. Ultimately, they can be subject to mean reversion and decline from those levels.

Relative strength can help investors identify where market attention is moving, but it should be treated as a starting point for research rather than a buy signal.

Key Risks to Keep in Mind

• Valuation risk: Strong expectations may already be reflected in the share price.

• Execution risk: Partnerships, orders or expansion plans may not translate into expected earnings.

• Liquidity risk: Smaller stocks can experience larger price swings.

• Market risk: Global events, crude prices, interest rates and foreign flows can affect Indian equities.

• Expectation risk: Even good companies can decline if results fall short of what the market expected.

Investors should therefore avoid interpreting one or two strong trading sessions as confirmation of a long-term investment thesis.

Conclusion

Stock market analysis must go beyond index levels to capture the full scope of the investment opportunity. Each company has unique catalysts and drivers.

Landmark Cars has been strategically developing its business by among other things, partnering with OLX India to improve its used-car business and expanding its used-car vending machine business. TCI Express has outperformed in the recent market, but broader markets trends have likely influenced the price action. Azad Engineering has not shown any recent positive development, but has the potential to benefit from the aerospace and defense and other precision engineering opportunities in the medium- to long-term.

In the current market, one of the better approaches is to find secular growth and rotation trades. When a company shows secular growth, investors should analyze the news, understand the effects on the company’s financials, assess the company’s valuation, and analyze if the growth is likely to persist.