New Delhi, Sept. 30 -- The Indian stock market is witnessing a sharp divergence between large-cap stocks and the broader market, with several blue-chip companies trading near multi-year lows even as mid- and small-cap indices have held up relatively better.

The Nifty 50 is down 13.40% year-to-date, compared with a 1.79% decline in the Nifty Midcap 100, while the Nifty Smallcap 100 has gained 8.77% during the same period. Over the past month, however, selling pressure has broadened, with the Nifty 50 down 6.50%, the Midcap 100 down 7.38%, and the Smallcap 100 down 4.14%.

The weakness in large caps has been particularly evident among some of India's largest companies. Reliance Industries is trading at a three-year low, with the stock down...