Syngene crashes nearly 13% as 20 Indian stocks plunge—Is a broader sell-off brewing?

Indian equity markets witnessed a pullback on 24 April 2025, as investors responded to a mix of domestic earnings uncertainty and heightened global risk sentiment. The Sensex declined by 315.06 points to 79,801.43, while the Nifty 50 ended lower at 24,246.70, falling 82.25 points. The day’s downturn, which broke a week-long rally, was characterised by broad-based selling across sectors, with pharmaceutical, infrastructure, financial services, and mid-cap manufacturing counters among the worst hit. Twenty stocks stood out for their sharp declines, each reflecting sector-specific concerns, valuation corrections, or waning investor confidence in the near term.

Why Did Syngene International Face the Sharpest Decline?

Syngene International Ltd. recorded the steepest fall among listed Indian equities, with its share price declining 12.98% to ₹651.90. The sharp move followed profit-booking after its recent rally and reflected concerns over a possible deceleration in global contract research demand. As a contract development and manufacturing organisation (CDMO) closely tied to global pharmaceutical outsourcing, Syngene remains sensitive to fluctuations in R&D budgets, particularly from US-based biotech firms. Amid tightening funding in the US biotech sector and delayed clinical trial pipelines, market participants reassessed Syngene’s near-term earnings visibility. The heavy volume of over 2 crore shares traded underscored institutional repositioning, likely prompted by shifts in healthcare sector allocations.

What Triggered Losses in Low-Cap and Speculative Counters?

Digital Content Ltd. fell 8.69% to ₹39.60 amid weakening sentiment in the small-cap digital media space. The correction followed speculative buying in the previous week that had driven up valuations without meaningful institutional backing. MGEL, another low-float counter, dropped 8.05% to ₹13.70. Concerns over limited revenue visibility and ongoing restructuring efforts in the company’s promoter group led to a sharp reversal. The selling in both stocks appeared driven by retail unwinding in response to heightened volatility and the absence of fresh growth triggers.

Is DJML’s Correction Reflecting Cost Inflation Challenges?

DJML declined by 7.46% to ₹120.00 as packaging and allied materials companies grappled with cost escalations. The company’s margins are under pressure due to higher input prices, especially for polymer-based products. In a tight monetary environment where demand visibility is limited and price pass-throughs are increasingly difficult, DJML’s stock correction reflected cautious sentiment around operating leverage in mid-tier manufacturing.

What Explains SRD’s 7% Drop?

SRD’s 7% decline to ₹66.25 came amid reports of underperformance in its industrials division and delayed receivables from government contracts. With limited free float and negligible institutional holding, the stock remains highly susceptible to rapid sentiment shifts. SRD’s decline also coincided with a broader pullback in mid-cap industrial players, who are expected to face headwinds from delayed capital expenditure cycles in core infrastructure segments.

How Did MHLXMIRU and Manaksia Steels React to Sectoral Headwinds?

MHLXMIRU declined 6.98% to ₹232.31, weighed down by margin erosion due to costlier inputs and a slowdown in domestic OEM orders. Similarly, Manaksia Steels Ltd. shed 6.51% to ₹63.61. The steel sector has faced persistent pressure amid declining commodity prices, subdued infrastructure activity, and global oversupply concerns. With China signalling tepid growth in construction demand and global steel benchmarks softening, Indian steelmakers are confronting tightening spreads that have impacted earnings expectations for Q1 FY26.

Why Did Kaushalya Infrastructure Face Selling Pressure?

Kaushalya Infrastructure saw a 6.38% fall to ₹905.00. The decline, though on thin volumes, suggested growing concern over liquidity and execution timelines in the infrastructure space. Infrastructure stocks have generally been under stress due to delays in contract finalisation, project financing bottlenecks, and increased working capital requirements amid a rising interest rate regime.

Can Fin Homes and Times Guaranty Decline Reflect Finance Sector Risk Repricing?

Can Fin Homes Ltd. dropped 5.09% to ₹706.95 as investors reassessed growth forecasts in the housing finance space. Amid regulatory scrutiny on NBFC lending practices and intensifying competition from banks offering lower interest rates, housing finance companies are facing margin compression. The decline in Times Guaranty Ltd., down 6.23% to ₹167.90, reflected similar themes: asset quality concerns, rising credit costs, and lack of growth capital in smaller NBFCs.

What Drove Selling in Andhra Paper and India Nippon Electricals?

Andhra Paper Ltd. fell 6.16% to ₹125.90 as paper industry players struggled with falling demand in export markets and increasing raw material costs. The broader slowdown in global demand for packaging material and oversupply in the domestic segment has led to sharp corrections in input-linked midcaps. India Nippon Electricals Ltd. slid 5.94% to ₹598.90, with market participants citing demand slowdown from two-wheeler OEMs and cost headwinds from imported electronic components.

Is Waaree Energies Facing a Valuation Rollover?

Waaree Energies Ltd. declined 5.84% to ₹2,832.00, pulling back after an extended rally driven by optimism around India’s solar infrastructure expansion. While the company retains strong long-term growth prospects, near-term headwinds including softening module ASPs, regulatory delays in utility-scale project tenders, and concerns over imported component dependencies have led to cautious positioning. The company saw over 62 lakh shares traded, indicating broad-based participation in the sell-off.

What Are Penny Stock Declines Signalling?

TPHQ Ltd. dropped 5.45% to ₹1.04, GATECH DVR fell 5.10% to ₹0.93, and Keep Learn Ltd. declined 5.02% to ₹4.16. These penny stocks experienced speculative corrections as traders exited high-volatility counters in a risk-off environment. The lack of any positive fundamental developments and their extremely low institutional ownership make such stocks especially vulnerable during broader market weakness.

What Caused Losses in EPACK, NACL Industries and Gensol?

EPACK Durable Ltd. fell 5% to ₹375.35 as the consumer appliances segment witnessed a slowdown in rural demand. With the summer season’s peak demand yet to materialise fully and rising competition from established brands, EPACK’s operating leverage appears challenged. NACL Industries Ltd., down 5% to ₹188.80, has faced pressure from declining agrochemical realisations and input cost volatility. Gensol Engineering Ltd. also declined 5% to ₹94.91, amid limited new project announcements and delays in EV infrastructure expansion plans.

How Did Broader Economic and Policy Factors Influence the Sell-Off?

The broader decline in Indian equities was amplified by external macroeconomic concerns. Renewed global trade tensions, particularly the reimposition of tariffs on China by the United States under President Donald Trump, have created uncertainty around export-linked sectors. Domestically, while the Reserve Bank of India has held the policy repo rate at 6.0%, its commentary has remained cautious due to inflation concerns and tightening global financial conditions.

Investor sentiment was also influenced by rising crude oil prices and early signs of a delayed monsoon, both of which could potentially impact inflation trajectories. These macro factors, combined with subdued corporate earnings reports and weak FII participation, have contributed to recent volatility. On 24 April, foreign institutional investors were net sellers, while domestic institutions offered limited buying support, leading to a sharp correction in mid-cap and high-beta counters.

What Should Investors Expect Going Forward?

The breadth of the market correction across sectors and capitalisations suggests that investors are repricing risk in line with evolving global and domestic uncertainties. While the declines present potential value in select fundamentally sound counters, the lack of near-term triggers and elevated volatility call for a cautious approach. Investors are likely to favour companies with strong balance sheets, predictable earnings, and resilience to interest rate or commodity shocks. The underperformance in small- and mid-cap stocks also highlights the growing divergence in market leadership, with large-caps remaining relatively more insulated during such pullbacks.