NSE’s biggest losers on March 26: NDL Ventures, Salasar Techno Engineering, and others tumble

Indian stock markets took a sharp downturn on March 26, 2025, as a wave of profit-booking halted the recent rally in both the NSE Nifty 50 and BSE Sensex indices. After seven consecutive sessions of gains, investor sentiment turned cautious amid looming uncertainties over new U.S. tariffs and a reassessment of market valuations. Small- and mid-cap stocks bore the brunt of the sell-off, with the NSE’s top 20 losers experiencing significant declines.

Why did Indian stock markets fall after a seven-day rally?

The market’s decline was largely driven by investor concerns over global trade policies, with upcoming U.S. tariff announcements expected on April 2 adding to the uncertainty. The sell-off came after a prolonged rally that had pushed key indices to new highs, prompting traders to lock in gains. The NSE Nifty 50 dropped 0.77% to close at 23,486.85, while the BSE Sensex declined 0.93%, settling at 77,288.50.

While foreign institutional investors (FIIs) had been instrumental in driving recent market gains, a shift in sentiment saw some foreign outflows, leading to heightened volatility. The selling pressure was not confined to any single sector, with financials, technology, and small-cap stocks experiencing significant declines.

Which stocks were the biggest losers on the NSE?

Among the stocks that faced the sharpest declines, NDL Ventures emerged as the worst performer, plummeting 16.20% to close at ₹60.02, compared to its previous close of ₹71.62. This steep decline reflected broader concerns about liquidity in small-cap counters.

Salasar Techno Engineering followed, posting a 11.08% decline, with its stock closing at ₹9.39. The company, which operates in the engineering and construction sector, saw higher-than-usual selling volumes as investors moved away from riskier bets.

Other significant losers included B.L. Kashyap and Sons Limited (BLBLIMITED), Lotus Eye Hospital and Institute (LOTUSEYE), and Vineet Laboratories (VINEETLAB), which dropped 10.96%, 10.91%, and 10.69%, respectively. This pattern of sharp declines extended to other small- and mid-cap stocks, including AMD Industries (-10.53%), Mukta Arts (-10.43%), Kesoram Industries (-10.05%), and Goldstone Technologies (-10.00%), all of which saw substantial losses in their stock prices.

What led to the steep decline in small-cap and mid-cap stocks?

The sharp downturn in small- and mid-cap stocks suggests that investors are reassessing the risks associated with these segments after an extended period of valuation expansion. These stocks had significantly outperformed the broader market in recent months, driven by retail participation and optimism surrounding domestic economic growth. However, concerns over potential overheating and profit-booking led to an aggressive sell-off.

Additionally, market participants grew wary of liquidity risks in small-cap counters, where large-scale exits by institutional investors can trigger sharp price swings. While these stocks tend to offer higher growth potential, they also carry increased volatility, which was on full display in the session’s trading activity.

How did broader sector trends contribute to the market decline?

Beyond individual stocks, broader sectoral trends played a crucial role in shaping the market’s direction. Financial stocks, which had been instrumental in driving the recent rally, lost momentum. Heavyweights like HDFC Bank and Reliance Industries shed 0.8% and 1%, respectively, reflecting the cautious sentiment prevailing in the market.

The downturn also extended to pharmaceutical and IT stocks, with Cipla falling 2.32%, Tech Mahindra sliding 2.69%, and Wipro declining 1.6%. This suggests that investors are shifting their focus toward a more defensive approach, reducing exposure to sectors that have already seen significant run-ups in valuations.

Large-cap stocks also faced selling pressure, with NTPC Limited tumbling 3.35% to close at ₹354.65. Other prominent names, including Bajaj Finance and Bharat Petroleum Corporation Limited (BPCL), also saw declines of 2.22% and 2.19%, respectively.

How do global factors and trade policies influence Indian markets?

Global economic conditions play a key role in shaping the direction of Indian stock markets, and investor concerns over U.S. trade policies weighed heavily on sentiment. The expectation that the U.S. administration will announce new tariffs on April 2 has prompted global investors to take a more cautious approach, leading to increased volatility.

Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, stated that the sell-off was largely a result of profit-booking amid heightened global uncertainties. While domestic fundamentals remain strong, global macroeconomic developments continue to influence short-term market movements.

Which stocks managed to gain despite the sell-off?

Amid the widespread declines, a few stocks managed to buck the trend. IndusInd Bank was among the top gainers, rising 2.86% to close at ₹655.30. Trent Limited also posted gains, climbing 2.64% to ₹5,321.95, reflecting continued investor interest in consumer and retail stocks despite the broader market downturn.

What does this market movement indicate for investors?

The sharp decline in small-cap and mid-cap stocks highlights the risks associated with overheated valuations and profit-booking cycles. While the recent rally had been driven by strong foreign inflows and domestic growth optimism, the market’s retreat suggests a period of consolidation as investors digest global trade developments and sector-specific risks.

For investors, this signals the importance of sectoral diversification and risk management in portfolio strategies. While market corrections can be unsettling, they also present opportunities to accumulate fundamentally strong stocks at lower valuations.

The coming weeks will be crucial in determining whether the market stabilizes or experiences continued volatility. Investors will closely monitor global trade developments, foreign institutional investor activity, and macroeconomic indicators for further cues on market direction.

As the Indian stock market navigates this uncertain landscape, maintaining a balanced investment strategy will be key to managing risk and capitalizing on opportunities in the evolving market environment.