SPARC (NSE: SPARC) and ABFRL (NSE: ABFRL) lead top Indian stock losers as pharma, retail, and NBFCs weaken

On June 4, 2025, Indian equity markets offered a study in contrasts. While the benchmark BSE Sensex rose 200 points and Nifty 50 tested 24,650, the India VIX dropped 2.11% to 16.21, signaling softer short-term volatility. But beneath headline indices, mid-cap and small-cap stocks endured significant corrections, exposing fragility in broader investor sentiment.

Sectoral pain was especially pronounced in pharmaceuticals, consumer discretionary, NBFCs, and real estate, where earnings risk, regulatory hurdles, and liquidity concerns intersected. The session was also marked by heavy institutional profit-booking, several bulk deals, and mounting pressure on speculative microcap counters. Below, we dive into the key stocks that led the downturn.

Why Did SPARC (NSE: SPARC) Stock Fall on June 4?

Sun Pharma Advanced Research Company Ltd. (NSE: SPARC) plummeted 20.00% to ₹156.14, making it the steepest loser on the NSE for the day. The sell-off followed a dual blow: a failed Phase 2 trial of its dermatology drug candidate SCD-044, and a surprise inspection by the U.S. FDA at its Halol facility.

SCD-044, intended to treat atopic dermatitis and psoriasis, failed to meet its primary efficacy endpoints, dealing a significant blow to the company’s late-stage pipeline credibility. SPARC, a demerged R&D entity from Sun Pharmaceutical Industries Ltd., had pinned considerable investor optimism on SCD-044, especially after favorable preclinical data.

The broader context reveals more. Indian pharma R&D firms have come under intense investor scrutiny in 2025, as biotech sentiment cools globally amid tighter capital flows and delayed U.S. approvals. On June 4, SPARC recorded ₹282 crore in turnover, with a staggering 1.73 crore shares changing hands, signaling large institutional unwinding. SPARC’s P/E multiple—already stretched at 90x trailing EPS—appears unsustainable amid such R&D setbacks.

What Caused ABFRL (NSE: ABFRL) Stock to Drop Over 11%?

Aditya Birla Fashion and Retail Ltd. (NSE: ABFRL) crashed 11.49% to ₹76.10, driven by a Rs 582 crore bulk deal exit by its once-strategic investor Flipkart (Walmart group), which sold off its entire 6% stake.

The sudden exit rattled market confidence, raising red flags about long-term visibility, omnichannel scaling strategy, and financial discipline. Though ABFRL owns marquee brands like Pantaloons, Van Heusen, and Allen Solly, the company has missed consensus estimates for two straight quarters, especially on EBITDA margins, last reported at 7.9% in Q4 FY25, versus 9.8% year-on-year.

Trading volumes surged to over 24 crore shares, among the highest on the NSE. While ABFRL’s market cap remains substantial at over ₹7,000 crore, investor patience is clearly thinning amid sector-wide discretionary demand softness and elevated input costs.

Why Did Agro Phos India (NSE: AGROPHOS) Stock Fall?

Agro Phos India Ltd. (NSE: AGROPHOS) declined 10.30% to ₹36.50, continuing its downward drift in a weak agri-input environment. The fertilizer and chemical stock was impacted by persistent pressure on export margins. With raw material inflation returning in global ammonia and phosphoric acid prices, companies like Agro Phos face a classic cost-pass-through dilemma.

Agro Phos recently posted a net loss of ₹0.19 crore for Q4 FY25, a sharp reversal from a ₹3.97 crore profit a quarter earlier. The company’s topline also contracted by 24% year-on-year, signaling both volume and pricing erosion. In sectoral context, the entire agri-chemical space has underperformed the Nifty since January 2025, with investor rotation favoring capital goods and financials. Agro Phos’ trailing twelve-month P/E now hovers at an unattractive 54x, making it vulnerable to de-rating.

Why Did ASMS Global (NSE: ASMS) Fall 10%?

ASMS Global Ltd. (NSE: ASMS) lost 10.05% to ₹13.42, pressured by weak guidance for FY26, flat revenue growth, and elevated attrition in its small IT services portfolio. As a newer listed entity in the B2B consulting and outsourcing segment, ASMS is yet to stabilize its margin profile. Net profit for FY25 stood at just ₹1.3 crore on revenue of ₹68 crore—a net margin of 1.9%, among the lowest in the midcap IT universe.

The stock saw ₹3.7 crore in turnover, but with institutional holding below 3%, retail investors bore the brunt of the collapse. The broader IT sector is also digesting global macro caution, with Nasdaq peers issuing muted revenue outlooks.

What Caused NIBL (NSE: NIBL) to Drop?

NIBL (NSE: NIBL) declined 10.01% to ₹33.45, pulled down by tightening NBFC liquidity and rising rural stress. The company, which specializes in unsecured and small-ticket rural lending, is exposed to monsoon-linked repayment risk. The IMD’s recent downgrade of monsoon expectations has triggered analyst downgrades across microfinance NBFCs.

NIBL’s Q4 FY25 earnings showed a Gross Non-Performing Assets (GNPA) ratio of 5.2%, above the sector average of 3.6%. With cost of funds rising by 85 basis points since October 2024, spreads are being squeezed, forcing analysts to revise return-on-asset forecasts downward to 1.2%.

Why Did Parsvnath Developers (NSE: PARSVNATH) Stock Drop?

Parsvnath Developers Ltd. (NSE: PARSVNATH) fell 10.01% to ₹16.45 as the real estate mid-cap continues to face cash flow and delivery challenges. The firm’s exposure to the stressed Delhi-NCR submarkets, where regulatory clearance delays remain endemic, is eroding investor confidence. Despite announcing new project launches in Gurugram and Noida, the company has yet to break ground on major residential parcels.

FY25 revenues came in at ₹411 crore, but debt levels remain elevated at ₹1,225 crore, translating into a debt-to-equity ratio of 2.1x—well above peer median of 1.3x.

What Triggered LASA Supergenerics (NSE: LASA) to Slide?

LASA Supergenerics Ltd. (NSE: LASA) declined 8.73% to ₹13.70, amid global pricing pressure in active pharmaceutical ingredients (APIs). A delay in key regulatory filings—disclosed during its June 4 Annual General Meeting—added fuel to investor anxiety. LASA reported an operating margin of just 3.4% in FY25 versus 8.6% a year earlier, citing input cost inflation and delayed receivables from export markets.

The company’s microcap status, with a market cap under ₹150 crore and thin institutional coverage, makes it highly sensitive to any deterioration in fundamentals.

Why Did MIDHANI (NSE: MIDHANI) Stock Fall?

Mishra Dhatu Nigam Ltd. (NSE: MIDHANI) dropped 7.53% to ₹21.73, pressured by sluggish order inflows and defense capex delays. Despite being a PSU with strategic capabilities in titanium and superalloy manufacturing, investors are concerned about declining execution velocity. FY25 saw revenue grow just 3% year-on-year to ₹1,004 crore, with net profit flat at ₹180 crore.

MIDHANI trades at a forward P/E of 26x—still above its 5-year average. Analysts cite lack of near-term triggers, and fund managers are rotating into faster-growing defense names like HAL and Bharat Dynamics.

Mahindra Lifespace Developers (NSE: MAHLIFE): Rights Issue Fallout

Mahindra Lifespace Developers Ltd. (NSE: MAHLIFE-RE) dipped 7.45% to ₹61.50, after disappointing rights issue subscription data. Though part of the well-regarded Mahindra Group, the real estate arm is seeing slower-than-expected recovery in urban launches. Pre-sales grew only 6% year-on-year in FY25, below Street expectations of 12–14%. With net debt rising by ₹290 crore post-issue, the company’s return on capital employed for FY26 may compress to below 9%.

Arvee Laboratories (NSE: ARVEE): Low Liquidity, High Volatility

Arvee Laboratories Ltd. (NSE: ARVEE) lost 7.07% to ₹180, with just 2,046 shares traded on the NSE. The stock had rallied in May amid rumors of strategic investment, which have now fizzled out. A FY25 net profit of ₹3.5 crore on revenue of ₹47 crore underscores its nano-cap profile. With no institutional ownership and thin float, the stock remains vulnerable to sharp corrections under regulatory scrutiny.

Institutional Sentiment and Expert Reactions

The June 4 session was marked by heavy selling in high-beta names and selective bulk deal exits such as Flipkart’s divestment in ABFRL. Fund houses are reducing exposure to speculative mid- and microcaps, favoring earnings-visibility sectors like banking, capital goods, and IT services.

Brokerage notes cited by traders indicate short-term bearish momentum in pharma R&D plays and real estate microcaps. Risk-off sentiment remains high as the market prices in tighter RBI policy and monsoon volatility.

What’s Next for Investors?

Key developments to watch include the RBI’s monetary policy outcome on June 7, where any signal on rate direction could reshape NBFC and real estate sentiment. Budget previews due in early July will test investor confidence in subsidy plans and infra allocations. Meanwhile, Q1 FY26 pre-earnings guidance will begin trickling in across pharma and consumer-facing names. As FII flows remain neutral, smart money continues rotating toward large-caps with strong cash flow visibility and low leverage.