Key Indian stocks fall sharply on April 11 despite Sensex rally, sectoral divergence intensifies

Why did key Indian stocks underperform despite a strong market rally?

On April 11, 2025, Indian benchmark indices posted robust gains, with the BSE Sensex rising 1.77% to close at 75,157.26 and the NSE Nifty 50 climbing 1.92% to 22,828.55. The rally was driven by a positive shift in global sentiment after the United States temporarily paused new tariffs on nations other than China, easing fears of an imminent global trade slowdown. However, beneath the surface of this optimism, a notable set of 20 Indian stocks bucked the trend and closed significantly lower.

This disconnect reflects an increasingly bifurcated market landscape in India, where investor enthusiasm around blue-chip banking, energy, and metal stocks is not translating to mid- and small-cap counters or certain financial and consumer-focused firms. Sectoral underperformance, investor caution, and policy-linked volatility contributed to losses across these 20 stocks, spanning industries from general insurance and broadcasting to pharmaceuticals and granite exports.

Which Indian stocks recorded the steepest declines on April 11?

Among the day’s worst performers was Raj Television Network Ltd., which plunged 10% to ₹72.00. Despite an early surge to ₹88.00, the regional broadcaster faced a sharp selloff, reflecting ongoing investor concerns about linear media’s ad revenue growth and the rising dominance of over-the-top (OTT) platforms.

Orchid Pharma Ltd. dropped 7.18% to ₹3.49 amid continued volatility in the low-priced pharma segment. Though once a turnaround story following insolvency resolution, Orchid’s recent performance has been hampered by regulatory uncertainties and modest progress in rebuilding its portfolio.

RattanIndia Power Ltd. (RVHL) declined 6.56% to ₹46.00. While the power producer had earlier seen speculative trading interest, long-term headwinds around India’s transition from thermal to renewable energy continue to weigh on sentiment.

Muthoot Finance Ltd., a major non-banking financial company (NBFC), saw a significant 5.84% fall, closing at ₹2,015.00. The gold loan lender has been under pressure from rising interest rate expectations, regulatory overhang concerning NBFC norms, and questions about asset quality in rural lending portfolios. The Reserve Bank of India’s recent scrutiny of gold loan companies may also be contributing to caution around the stock.

Kesoram Industries Ltd. saw its stock fall 5.25% to ₹3.61, with over 2.1 million shares traded. The diversified conglomerate, which has exposure to cement and rayon, has faced debt restructuring challenges in the past, and its capital structure remains a concern for institutional investors.

GENSOL Engineering Ltd., which provides solar EPC services, declined by 5.01% to ₹132.66. Despite the push for clean energy in India, margin pressures and order execution delays continue to impact small and mid-sized solar firms.

ICICI Lombard General Insurance Company Ltd. recorded a sharp drop of 4.51%, settling at ₹1,706.00. As one of the leading private insurers in India, the company’s underperformance was unexpected. However, the broader insurance sector is currently navigating claim inflation, intensified competition, and concerns over regulatory changes to product structures.

What sector-specific trends shaped these stock declines?

Consumer discretionary and FMCG stocks also featured prominently among the day’s underperformers. Jyothy Labs Ltd., known for brands like Ujala and Exo, slipped 3.98% to ₹364.50. Weak rural demand, high raw material costs, and concerns over pricing power in the competitive home and personal care market continue to weigh on investor sentiment.

Aymsyntex Ltd. declined 4.20% to ₹216.00. Textile players have been under pressure due to slowing exports, weak demand in key Western markets, and the high cost of synthetic fibre inputs.

Aro Granite Industries Ltd., an exporter of granite products, dropped 3.97% to ₹34.85. The building materials sector has been hit by subdued demand in real estate construction, especially in overseas markets, which form the core of Aro’s customer base.

Vakrangee Ltd., which once positioned itself as a digital rural services enabler, fell 3.57% to ₹9.99. Despite high trading volume of over 16.6 million shares, the stock continues to face credibility concerns following past governance issues and weak earnings performance.

AIROLAM Ltd., which produces laminates and allied building materials, slipped 3.34% to ₹92.01. Similar to Aro Granite, the company faces demand compression in its key segments, especially in tier-2 and tier-3 cities.

Are small-cap companies more vulnerable in the current market cycle?

Several small-cap names on the list such as MFML (down 4.60% to ₹27.77), KHANDSE (down 4.11% to ₹21.69), RHL (down 3.94% to ₹216.25), and ZENITHEXPO (down 3.42% to ₹205.10) illustrate how investor appetite has cooled for thinly traded counters. In an environment where institutional flows are concentrated in blue chips and large mid-caps, these stocks are prone to price swings on relatively low volumes.

Similarly, SFL, a less-tracked industrial stock, fell 3.31% to ₹657.60. Despite decent order books in engineering and specialty manufacturing, many investors have adopted a wait-and-watch approach until more earnings clarity emerges across capital goods plays.

FMNL, active in the real estate and infrastructure development space, declined 3.27% to ₹15.10. Given India’s urbanisation trends, the sector holds long-term promise, but cash flow constraints and land acquisition delays remain short-term deterrents.

NECLIFE, or Nectar Lifesciences Ltd., a pharmaceutical company, fell 3.18% to ₹21.95. While India’s pharma exports remain strong, companies like NECLIFE face intensified pricing pressure in generics and unresolved capacity utilization issues.

What macroeconomic and policy factors are influencing investor behaviour?

The broader context for Indian equities remains favourable, but uneven. Inflation is gradually moderating, and foreign portfolio investment has resumed momentum following global central banks’ dovish signals. However, certain policy developments have created stock-specific overhangs. For instance, stricter lending norms for NBFCs, ongoing reviews of health and general insurance frameworks, and input price inflation across FMCG and building material sectors are contributing to selective risk aversion.

Furthermore, investors remain wary of global spillovers. While the temporary pause on U.S. tariffs offered a relief rally, China’s retaliatory stance and the uncertainty around long-term global trade realignment continue to add volatility, especially for export-oriented companies.

What does this underperformance signal for near-term market strategy?

Despite India’s bullish long-term macroeconomic fundamentals, April 11 demonstrated how stock-specific factors continue to dominate investor decision-making. The underperformance of these 20 stocks—ranging from high-profile names like Muthoot Finance and ICICI Lombard to lesser-known small caps—shows that earnings growth, regulatory clarity, and sector rotation trends are now paramount.

For investors, this reaffirms the need to remain sectorally selective. While large-cap banking and industrials are likely to benefit from India’s capex cycle and policy push, companies exposed to rural demand, regulatory flux, or poor corporate governance may continue to face resistance—even in a rising market.