Markets soared, but these 20 Indian stocks tanked—here’s what you missed

Even as the Indian equity markets registered a strong relief rally on April 11, 2025—driven by positive cues from global developments—a cohort of individual stocks ended the session deep in the red. The Nifty 50 and Sensex both surged more than 2%, buoyed by temporary tariff relief from the United States and the Reserve Bank of India’s dovish stance. However, a closer look at intraday trading reveals that several financial services stocks, infrastructure-linked counters, and microcap shares experienced significant selloffs, signalling persistent sector-specific vulnerabilities.

Muthoot Finance Ltd. led the list of top decliners, falling 6.09% to close at ₹2,009.65. Despite opening at ₹2,099.15 and touching an intraday high of ₹2,103.80, the stock faced heavy selling pressure amid concerns over net interest margins and profitability amid gold price volatility. The company witnessed high volumes with over 24.7 lakh shares changing hands, reflecting institutional repositioning ahead of earnings season. Investors appeared cautious, especially in the wake of moderating gold demand and tighter regulatory oversight of non-banking financial companies.

How did financial services stocks perform under market optimism?

While the broader banking and NBFC segment has recently attracted foreign portfolio inflows, April 11 revealed a divergence in investor sentiment. Aavas Financiers Ltd. recorded a 3.74% drop, ending the session at ₹1,967.20 after opening at ₹2,060. The company’s exposure to semi-urban and rural housing credit markets has raised questions around disbursement growth and borrower quality amid mixed demand conditions. Meanwhile, Delphi World Money Ltd. declined 3.31% to ₹120.80, continuing a trend seen in mid-tier financial service providers where margin pressure and competition from fintech challengers remain pronounced.

SecureKloud Technologies Ltd., a cloud-native security solutions company with exposure to financial services digitisation, fell 3.30% to ₹25.50. Despite its positioning in a high-growth segment, the lack of meaningful earnings momentum and capital deployment clarity has made the stock vulnerable to corrections during broader risk-off moves.

What were the key microcap and speculative stock declines on April 11?

The session also saw steep losses across microcap stocks, often traded on speculative momentum. Orchasp Ltd. dropped 5.05% to ₹3.57, while Blue Coast Hotels Ltd. fell 5.03% to ₹25.29. With minimal liquidity and limited fundamental updates, these stocks often react sharply to changes in trader sentiment and intraday volatility.

GENSOL Engineering Ltd., a player in solar energy engineering services, lost 5.01% to close at ₹132.66. The drop follows recent concerns about state-level tender delays and rising module input costs, which have impacted sentiment in the renewables segment. Gujarat Lease Financing Ltd. fell 4.03% to ₹5.00, reflecting weak interest in older NBFC platforms that lack a forward-looking digital transformation roadmap.

MFML, which touched a high of ₹29 during the session, ended 4.12% lower at ₹27.91. The company’s limited public visibility and opaque financials have prompted regular swings, especially amid low daily volume activity.

How are infrastructure and logistics counters faring amid macro uncertainty?

The infrastructure segment faced continued selling, suggesting that investors are not yet convinced about the pace of project execution or capital formation revival. AB Infralogistics Ltd. declined 3.17% to ₹79.68 despite opening near its previous close. Similarly, Usha Engineering Ltd. ended the day down 3.28% at ₹402.35. Both firms operate in capital-intensive sectors sensitive to policy bottlenecks, commodity cost spikes, and delays in government payments.

Sical Logistics Ltd. slipped 2.63% to ₹87.90 amid concerns about rising freight competition and muted industrial output affecting volume movement. Arena Enterprises Ltd., a diversified player with links to event infrastructure and property assets, closed 2.64% lower at ₹41.00. Its real estate exposure and erratic earnings trend have contributed to periodic declines.

Which real estate and hospitality names saw renewed weakness?

Real estate counters remained weak, with Parsvnath Developers Ltd. falling 2.68% to ₹23.58. While India’s housing market has seen price appreciation in metro cities, affordable housing and Tier-2 developer stocks remain under pressure due to funding limitations and high unsold inventory. Premier Ltd. dipped 2.59% to ₹3.01, continuing its long-term decline as legacy manufacturing stocks lose market favour in a growth-oriented environment.

Hospitality-linked counters showed no signs of recovery-driven upside. Asian Hotels (North) Ltd. dropped 2.25% to ₹362.50. Despite a gradual uptick in domestic travel and conferencing business, hotel operators are facing cost-related margin compression and inconsistent recovery in international bookings.

Are consumer goods and industrial metals stocks under pressure too?

In the FMCG space, Jyothy Labs Ltd. fell 2.32% to ₹370.80. The decline came despite recent input cost easing in categories like detergent raw materials and packaging polymers. Investors are closely watching quarterly volume growth and pricing trends in a market where rural recovery remains unpredictable.

Visa Steel Ltd., focused on alloy steel and ferrochrome production, dropped 2.36% to ₹32.21. The stock has struggled to recover meaningfully despite periodic commodity rallies. Market watchers point to muted demand from automotive and construction sectors, along with overcapacity concerns, as limiting sentiment in ferrous metals.

How is policy and trade volatility shaping investor caution?

The Indian market’s April 11 rally was driven by external optimism following US President Donald Trump’s 90-day pause on imposing new tariffs on dozens of countries. However, this relief came against the backdrop of an aggressive 125% tariff hike on Chinese imports, which has prompted fears of retaliatory measures and global trade dislocation. While India is not directly targeted, the spillover effect on global commodity flows, technology imports, and foreign investment exposure is influencing sectoral rotation.

Adding to the caution, Moody’s Analytics revised India’s GDP forecast for 2025 down to 6.1%, reflecting expectations of global growth moderation and potential export shrinkage. Sectors such as medical devices, gems and jewellery, and textiles could see knock-on effects from altered trade routes and higher input costs due to realigned global supply chains.

Domestically, while the Reserve Bank of India cut the repo rate by 25 basis points to 6.00%, the transmission into corporate lending and consumption revival is still uncertain. As a result, investors are sifting through earnings data, balance sheets, and forward guidance to identify companies capable of navigating through both macroeconomic headwinds and sector-specific disruption.

What does the divergence in stock movement indicate for future market trends?

April 11 underscored a bifurcated market structure, where benchmark indices can post healthy gains driven by heavyweights while a significant number of individual stocks struggle to attract confidence. This divergence reflects broader themes—such as concentration of gains in select sectors like IT, banking, and energy—while mid-cap and microcap segments, especially in manufacturing, infrastructure, and discretionary consumer sectors, remain vulnerable to macro shocks and sentiment shifts.

Investor sentiment is cautiously optimistic, but clearly selective. Stocks with strong cash flows, scalable business models, and earnings visibility are being rewarded, while highly leveraged or opaque entities continue to face selling pressure. With earnings season around the corner, the focus will likely shift to company fundamentals, capex visibility, and management commentary on demand resilience.