The Indian stock market ended on a subdued note on May 23, 2025, with benchmark indices largely flat but notable weakness in midcap and smallcap segments. While the broader macro outlook remains supportive — bolstered by early monsoon forecasts and stable domestic economic indicators — market participants chose to lock in profits across recently rallied sectors. Institutional flows showed continued foreign investor selling pressure, countered partly by selective buying from domestic mutual funds in largecaps. However, the risk-off tone in mid-tier and thematic counters led to sharp declines in several names, many of which had seen speculative interest in recent weeks.
The early arrival of the southwest monsoon — now expected over Kerala by May 25, nearly a week ahead of schedule — has improved the broader rural and agricultural outlook. Yet, this tailwind has yet to fully translate into renewed buying in consumption or agri-linked midcaps, many of which saw steep valuation run-ups in the past month. Sectors like defence manufacturing, renewable energy, and auto ancillaries bore the brunt of the sell-off on Friday, triggering double-digit declines in multiple stocks. Below is an in-depth analysis of the top 10 losers on the NSE on May 23, 2025.
What Caused PREMEXPLN to Drop on May 23, 2025?
Premier Explosives Limited (NSE: PREMEXPLN) plunged 9.99% to close at ₹546.20, down from its previous close of ₹606.85. Despite no negative news specific to the company, the sharp sell-off was driven by valuation concerns and heavy unwinding after a multi-week rally. The defence sector, which had seen inflows following fresh orders and indigenisation incentives, is now witnessing profit-taking as investors rotate into undervalued largecaps. Technical indicators showed the stock had entered overbought territory earlier this week. Volumes were robust, with over 7.4 lakh shares traded, suggesting institutional participation in the exit.
Why Did Apollo Stock Fall on May 23, 2025?
Apollo Micro Systems Limited (NSE: APOLLO) dropped 9.62% to ₹136.15 as the stock corrected sharply from its recent high of ₹150+. The company, which serves India’s defence and aerospace sectors, had earlier rallied on the back of fresh DRDO and ISRO supply contracts. However, sentiment turned cautious due to marketwide de-risking of high-beta defence counters. Concerns about upcoming equity dilution via a rights issue also weighed on near-term sentiment. With volumes exceeding 2.4 crore shares, the selling was both broad-based and momentum-driven, highlighting the fragility of recent gains.
What Drove KRITINUT Shares Lower on May 23?
Kriti Nutrients Limited (NSE: KRITINUT) fell 8.81% to ₹110.45, reversing some of the sharp appreciation seen in May. As a player in the edible oil and soya processing sector, the company has benefited from strong export demand and favourable agri-pricing. However, the run-up in stock price had outpaced earnings growth. With monsoon prospects now seen as favorable, speculative positions built on supply tightness have started unwinding. Broader FMCG and agri-commodities are stabilizing, and KRITINUT’s valuation now appears rich relative to sector peers. Volumes remained elevated, pointing to tactical exits by short-term investors.
Why Did Sanghvi Movers Share Price Decline on May 23?
Sanghvi Movers Limited (NSE: SANGHVIMOV) declined 8.78% to ₹295. The stock has been under pressure due to uncertainty in infrastructure project execution and renewable energy rollout timelines. As India enters a pre-Budget lull, capex announcements are now being digested, and companies like Sanghvi that are heavily leveraged to project activity are seeing demand recalibration. Despite posting healthy earnings in Q4 FY25, the market appears concerned about order book conversion and capital efficiency in Q1. With over 3.2 crore shares traded, the stock saw heightened volatility, possibly driven by institutional rebalancing.
What Pulled Down GROBTEA Stock on May 23?
The Grob Tea Company Limited (NSE: GROBTEA) declined 8.13% to ₹1,006. The drop appears driven by low liquidity and emerging weakness in commodity-linked stocks. Despite no major development from the company, investors likely booked profits after the counter surged over 15% in the past month. Sectoral headwinds, including wage inflation in plantations and export realisation uncertainty, added to the pressure. With volumes under 5,000 shares, even small exits led to outsized price impact, making this more of a technical correction than a fundamental repricing.
Why Did WAAREEENER Shares Drop Sharply on May 23?
Waaree Energies Limited (NSE: WAAREEENER) tumbled 8.04% to ₹2,756 after peaking above ₹2,995 earlier in the week. The solar energy major faced selling pressure amid concerns over regulatory revisions to India’s solar tendering process. Reports of solar module oversupply and pricing pressure in southern states further dented sentiment. While the company remains fundamentally strong with a diversified project pipeline, the risk of near-term earnings compression has spooked investors. Volumes surged to nearly 89 lakh shares, suggesting that institutions are trimming weightage in high-beta renewables.
What Led to UFO Stock Decline on May 23?
UFO Moviez India Limited (NSE: UFO) slipped 7.63% to ₹68.15 as media and cinema-linked stocks faced renewed concerns over profitability. The company, which distributes digital cinema content across India, is facing rising competition from OTT players and declining revenue per screen. Analysts have flagged the firm’s inability to scale its alternative revenue streams, and flat Q4 numbers have done little to support the bull case. With footfall recovery still uneven in Tier 2 and Tier 3 markets, investors are adopting a wait-and-watch approach. Volumes were moderate at around 3.9 lakh shares.
What Caused TBZ to Drop on May 23?
Tribhovandas Bhimji Zaveri Limited (NSE: TBZ) dropped 7.42% to ₹191.90 despite no immediate deterioration in fundamentals. The jewellery retailer has been under pressure due to volatile gold prices and softer urban discretionary demand following the wedding season. While the company has improved store-level productivity, investors remain concerned about inventory management and financing costs. Given the stock’s recent 20% rally, this correction appears linked to profit booking. Over 6.1 lakh shares were traded, highlighting the stock’s exposure to trader sentiment rather than long-only holders.
Why Did Beardsell Ltd Fall on May 23?
Beardsell Limited (NSE: BEARDSELL) declined 6.87% to ₹29.26, weighed down by sector-specific concerns in construction and industrial capex. The insulation and packaging firm is heavily reliant on infrastructure spending, which has slowed in certain state-led projects due to the pre-budget pause. Analysts have also pointed to margin compression in Q4 results and slower inventory turnover. The stock remains thinly traded, and the price move was amplified by modest volumes — around 2 lakh shares — indicating weak hands booking out.
What Caused JAYBARMARU to Slide on May 23?
Jay Bharat Maruti Limited (NSE: JAYBARMARU), an auto components supplier to Maruti Suzuki, fell 6.19% to ₹78.97. The stock’s underperformance stems from weak Q4 earnings, margin pressure, and a cautious outlook for Q1 FY26. Analysts have noted that the slowdown in PV sales and raw material volatility are eroding operational leverage. A downgrade from a leading brokerage on May 22 citing “execution slippage” also contributed to the stock’s decline. With over 10.4 lakh shares traded, the move reflects institutional derisking more than retail action.
Market Outlook: Correction or Sector Rotation?
The sharp declines in these ten counters highlight the fragile nature of the current midcap rally. While macro indicators — including early monsoon, contained inflation, and stable GDP forecasts — remain supportive, the market is undergoing a valuation reset, particularly in stocks where expectations had run ahead of fundamentals. For long-term investors, this correction may present selective buying opportunities in fundamentally strong names at better entry points.
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