Vodafone Idea, Hester Biosciences lead market outliers with 20% gains despite Sensex, Nifty tumble

Despite a volatile trading session that saw benchmark indices plunging to one of their steepest single-day declines in recent months, several small-cap and mid-cap stocks defied broader market sentiment with double-digit gains. The BSE Sensex closed 1,390 points lower at 76,024.51, while the NSE Nifty 50 slumped 353.65 points to end at 23,165.70. Yet, counters like Vodafone Idea, Hester Biosciences, and Radiant Cash Management Services posted eye-catching gains of nearly 20%, prompting traders and analysts to take a closer look at the disconnect between index-wide sell-offs and stock-specific rallies.

The wider market sell-off followed heightened concerns over global trade policy as investors braced for U.S. President Donald Trump’s expected announcement on new reciprocal tariffs set for April 2. Fears of a fresh protectionist wave impacting global supply chains and export-reliant sectors like Indian IT and manufacturing sparked broad-based selling. This negative sentiment was reflected across heavyweight stocks, especially in technology and banking, leading to a spike in India VIX, the market’s volatility gauge, which rose nearly 9% to 13.00.

What drove Vodafone Idea’s 20% rally despite sectoral pressures?

Vodafone Idea Ltd. led the gainers’ pack with a remarkable 20.15% surge, closing at ₹8.17 on volumes exceeding 2.3 billion shares—marking one of the most traded counters of the session. The sharp rally followed reports that the Indian government had officially converted ₹36,950 crore of outstanding spectrum dues into equity, raising its stake in the telecom operator to 48.99%. This move effectively positions the government as the largest shareholder, providing the company with significant fiscal breathing room and long-term policy assurance.

This development is particularly significant given Vodafone Idea’s longstanding financial instability, rising debt burden, and loss of subscriber base in a hyper-competitive telecom environment. With Reliance Jio and Bharti Airtel aggressively rolling out 5G and expanding rural coverage, Vodafone Idea had been losing market share for consecutive quarters. The equity conversion not only lifts the immediate overhang of spectrum liabilities but also paves the way for fresh capital infusion and strategic partnerships, potentially giving the company a renewed shot at survival and expansion in India’s rapidly digitising economy.

Which other stocks posted major gains and why?

Alongside Vodafone Idea, Hester Biosciences Ltd. gained 20% to close at ₹1,505.40, supported by renewed institutional interest in the veterinary pharmaceutical segment. With a growing focus on animal health, both due to food safety concerns and the rising demand for veterinary vaccines and diagnostics, the company is well-positioned to capitalise on global trends. The move in Hester’s stock also aligns with broader investor rotation into niche healthcare plays with export potential.

Radiant Cash Management Services Ltd. climbed 19.99% to ₹61.29. The company, which specialises in retail cash logistics and secure financial transport services, appears to be benefiting from growth in ATM outsourcing and the resurgence of physical cash transactions in semi-urban and rural areas. The counter was bolstered by broader optimism around financial infrastructure development under India’s digital inclusion initiatives.

Microcap stock Kanani Industries Ltd. also hit the 20% upper circuit, ending at ₹1.98. The company, which operates in the gem and jewellery export segment, has historically seen low volumes, but trading activity surged as speculative traders took positions amid a general rally in beaten-down small-cap names. Similarly, ORCHASP rose 19.72% to ₹2.61, and Manaksia Aluminium Company Ltd. advanced 18.98% to ₹21.88, benefitting from renewed interest in materials and real estate-linked stocks.

Other prominent gainers included Tarsons Products Ltd., which rose 17.61% to ₹355.00. Tarsons operates in the biolab equipment and plastics segment, servicing pharmaceutical and biotech firms. With a strong export pipeline and rising domestic demand from research institutions and government labs, Tarsons has emerged as a consistent performer in the mid-cap pharma tools segment.

Salasar Techno Engineering Ltd. jumped 18.63% to ₹9.68 amid increased investor interest in infrastructure-related stocks. The company provides services across engineering, procurement, and construction, including telecom tower fabrication, which may have attracted short-term momentum buying.

Birla Cable Ltd. was another top performer, closing 16.52% higher at ₹156.00. With India’s aggressive broadband rollout and optical fibre connectivity programs under BharatNet Phase 2, demand for high-quality fibre cable has strengthened, providing a tailwind to players in this segment.

How did broader market sentiment and global policy influence trading behaviour?

The steep fall in benchmark indices reflected a combination of global and domestic concerns. At the macro level, market participants reacted to reports indicating that President Donald Trump’s new tariff regime could involve punitive measures on key global exporters, including India. Although specific sectors have not yet been targeted, the Indian IT and pharma industries, which are heavily reliant on the U.S. for revenue, saw widespread selling.

This was compounded by weak sentiment in domestic banking and financial services stocks. HDFC Bank fell 3.35% while ICICI Bank lost 2.28%, following concerns over slower loan growth and potential asset quality issues should global demand weaken. Infosys and HCL Technologies were down 2.73% and 3.90%, respectively, amid fears of client budget cuts in the U.S. and Europe.

Although sector-specific fundamentals remain strong in several cases, the near-term uncertainty has prompted institutional investors to shift away from high-beta names. Analysts believe that until there is clarity on the scope and impact of the proposed tariffs, equity markets will likely remain under pressure, especially in sectors directly exposed to global trade.

What does this divergence between gainers and broader indices suggest?

While the Sensex and Nifty bore the brunt of macroeconomic headwinds, the surge in select stocks suggests that investors are selectively positioning in turnaround candidates, niche players, and infrastructure-linked stories. The divergence is not uncommon in volatile environments where broader sentiment is weak, but company-specific developments create short-term opportunities.

In addition to Vodafone Idea and Hester Biosciences, other stocks like Parag Milk Foods Ltd., Vadilal Industries Ltd., and Rossell India Ltd. saw gains between 13% and 14%, pointing to renewed confidence in FMCG and consumption-linked plays. As summer demand picks up, stocks tied to dairy, beverages, and cold-chain logistics have seen increased volumes and investor interest.

The upward movement in these counters reflects not only domestic consumption trends but also optimism around policy support for agriculture-linked and manufacturing sectors. With the Reserve Bank of India set to review interest rates in the coming weeks and inflation pressures appearing to stabilise, investors may be anticipating an accommodative stance that could support mid-cap and rural economy-driven stocks.

Could this divergence set the tone for the rest of the quarter?

Despite the current volatility, the strong showing of these 20 stocks underscores that the Indian equity market continues to offer selective value. While large-cap indices may remain sensitive to global macro triggers, small- and mid-cap names with positive earnings surprises, structural tailwinds, or government policy backing are likely to outperform.

Investor sentiment will hinge heavily on the outcome of upcoming global trade policy announcements, domestic corporate earnings for the March quarter, and cues from central banks. For now, the market appears to be in a wait-and-watch mode, with sectoral rotation playing a more prominent role than broad-based risk-taking.

Stocks that have demonstrated resilience during this phase, such as those in telecom, healthcare, financial logistics, and manufacturing, are likely to stay on the radar for both retail and institutional investors as capital continues to seek alpha in defensive and growth-oriented pockets.