March 28 market downturn: Aegis Logistics, AKG, and others suffer double-digit losses

The Indian stock market experienced a turbulent trading session on March 28, 2025, with multiple stocks facing sharp declines amid heightened volatility. Investors reacted to global economic concerns, sector-specific headwinds, and profit-booking activity, leading to steep losses across small and mid-cap stocks. While benchmark indices showed relative stability, the deep cuts in several lower-cap stocks indicate shifting market sentiment and uncertainty regarding near-term performance. The session’s biggest losers included stocks that fell over 10%, with some tumbling nearly 19% in a single day.

Why Did Kanani Industries Face the Sharpest Decline?

Jewellery exporter Kanani Industries Ltd. emerged as the worst-performing stock of the session, suffering a staggering 18.69% drop. The stock opened at ₹2.01 but quickly lost ground, hitting an intraday low of ₹1.60 before settling at ₹1.61. The high trading volume of over 2.1 million shares signals that investors were aggressively dumping their holdings, possibly in reaction to weaker earnings expectations.

Kanani Industries operates in the diamond processing and jewellery export market, a segment highly sensitive to currency fluctuations, gold price movements, and international trade policies. The recent appreciation of the Indian rupee against the U.S. dollar may have negatively impacted revenue expectations, as a stronger domestic currency makes Indian exports less competitive in global markets. Additionally, broader concerns over declining global demand for luxury goods have led investors to adopt a cautious stance on stocks linked to exports, triggering a selloff in Kanani Industries.

What Led to Ruchi Infrastructure’s 17% Plunge?

Ruchi Infrastructure Ltd., a company engaged in bulk liquid storage, logistics, and renewable energy, faced a sharp decline of 17.63%, closing at ₹6.54. The stock had briefly reached a high of ₹8.29 in early trading but quickly lost momentum, plunging to a low of ₹6.35. Investor sentiment in the logistics and infrastructure sector has been under pressure, as rising operational costs and weak demand projections have raised concerns over profitability.

The broader logistics sector has been struggling with higher transportation costs, regulatory challenges, and fluctuating global demand. The decline in Ruchi Infrastructure’s stock reflects an overall lack of confidence in companies reliant on bulk commodity transportation and storage. The stock’s price action suggests that short-term traders may have exited positions, exacerbating the downward trend.

How Did Aegis Logistics Lose Over 11% in a Single Session?

Aegis Logistics Ltd., a leading player in India‘s oil, gas, and chemical logistics sector, saw its stock fall by 11.48% to ₹798.95. The stock had previously closed at ₹902.60, and the heavy trading volume of nearly 3 million shares highlights strong selling pressure. The energy logistics sector is facing uncertainty amid fluctuating crude oil prices and global supply chain disruptions. The company’s exposure to volatile fuel transportation and storage costs could have contributed to the drop in its stock price.

The decline may also be linked to profit-booking by investors who had accumulated the stock during its recent rally. The oil and gas sector remains vulnerable to changes in government policies and international trade agreements, further influencing investor decisions. The sharp decline in Aegis Logistics suggests that traders are wary of near-term earnings risks, despite the company’s strong market position.

Why Did AKG Share Price Drop Over 10%?

AKG Exim Ltd., a company involved in international trade and commodity exports, saw its stock decline by 10.46% to ₹12.50. The stock had opened at ₹13.35 but fell to a low of ₹12.30 before settling at its closing price. The international trading sector is highly competitive and influenced by macroeconomic factors such as trade policies, currency movements, and raw material price fluctuations.

AKG’s sharp decline indicates that investors are growing cautious about potential risks related to global supply chain disruptions and inflationary pressures on trade-dependent businesses. The stock has shown volatility in recent months, and the current drop may be a reaction to broader market weakness rather than company-specific concerns.

What is Driving the Decline in Aarey Drugs & Pharmaceuticals?

Aarey Drugs & Pharmaceuticals Ltd. recorded an 8.77% drop, closing at ₹33.30. The pharmaceutical industry has been under pressure due to rising raw material costs and increasing regulatory oversight, particularly in the generic drug segment. Smaller pharmaceutical companies have been facing pricing pressures, which could impact their profit margins and future revenue growth.

The decline in Aarey Drugs’ stock suggests that investors are becoming more selective in their pharma holdings, favoring larger firms with more diversified product portfolios. The market has witnessed increased scrutiny on smaller drug manufacturers, leading to fluctuations in stock prices. The negative sentiment in the broader pharmaceutical sector may have contributed to Aarey Drugs’ decline.

Why Did Garware Fibres Experience a Sharp Drop?

Garware Technical Fibres Ltd., a manufacturer of synthetic ropes and netting solutions, saw its stock fall by 8.35% to ₹865.80. The stock had previously reached a high of ₹901 but faced profit-booking pressure as investors locked in gains. The industrial materials sector remains stable in terms of demand, but short-term market movements often result in price swings.

Despite strong business fundamentals, the drop in Garware Fibres suggests that traders are shifting their focus away from mid-cap industrial stocks in favor of more liquid large-cap options. The company remains a key player in its sector, and the current decline may be temporary.

What Are the Broader Market Implications?

The sharp declines in these stocks reflect growing market caution, particularly in small and mid-cap companies. Broader concerns such as inflation, global trade uncertainties, and sector-specific challenges have led to increased volatility. While some of these stocks may present buying opportunities at lower levels, the overall trend suggests that investors are adopting a more defensive stance.

Market participants will closely watch corporate earnings reports and macroeconomic data in the coming weeks to assess whether these declines signal a larger shift in investor sentiment. While some of the hardest-hit stocks may see a rebound if market conditions stabilize, the ongoing volatility suggests that caution is warranted in the near term.

As investors navigate the current market landscape, the focus will remain on companies that demonstrate resilience against macroeconomic challenges. The heavy losses seen on March 28, 2025, highlight the risks associated with speculative trading in small and mid-cap stocks, reinforcing the need for a balanced investment strategy.