Why are Indian stocks falling? 20 major companies see sharp declines amid market jitters

Why Did 20 Indian Stocks Post Steep Losses on April 23, 2025?

On April 23, 2025, Indian equity markets recorded significant weakness even as global indices rallied on the back of improved earnings sentiment and dovish central bank rhetoric. Domestic market sentiment diverged sharply, reflecting investors’ mounting unease with India-specific headwinds ranging from weak GDP projections to fragile sectoral fundamentals. The day’s most notable movement came from the 20 top losers across BSE and NSE, which reported declines between 4.8% and 9.65%. These losses weren’t confined to any single sector, underscoring how fragile investor confidence has become across broader Indian markets.

Jammu & Kashmir Bank led the losses with a sharp 9.65% plunge. The stock closed at ₹103.13 after opening at ₹108. The sell-off was triggered by a combination of concerns around credit quality and limited institutional interest in smaller regional banks. High trading volumes, crossing 3.25 crore shares, suggested heavy institutional selling, possibly in anticipation of increased provisioning in the upcoming results season.

UMA Exports also saw a steep decline of 7.70%, dragged down by concerns around the company’s export dependency in a climate of shifting trade policies and disrupted cross-border commerce. A sharp drop in commodity-linked exporters on the back of rupee weakness only worsened the sentiment.

Which Stocks Made the List of Top Losers and What Drove Their Declines?

Each of the 20 stocks featured in the losers’ table offered a unique lens into the broader worries haunting Indian equity markets. Ravikumar Distilleries, for instance, declined 6.75% as investors reassessed margin pressures in the alcohol sector, where rising costs of packaging, ethanol, and regulatory shifts in state excise laws have dented growth visibility. Style Bazaar dropped 6.32%, a correction widely seen as overdue following a speculative rally in mid-cap retail counters.

The tech services company Xelpmoc Design & Tech fell 6.23%, continuing a trend where early-stage tech platforms are facing valuation resets due to a mismatch between cash burn and monetisation capabilities. Similarly, Balaji Telefilms slipped 6.02% to ₹82.75, reflecting continued investor disillusionment with OTT players that are unable to achieve profitability despite rising consumption. The company’s struggles mirror wider issues in India’s fragmented digital content market, where intense competition and low pricing are eroding margins.

SMS Lifesciences saw its shares slide by 5.89% to ₹1,530, as bulk drug makers deal with international regulatory scrutiny and a slowdown in formulation orders. Blue Star, a bellwether in air conditioning and cooling solutions, dropped 5.83% as input cost inflation, particularly in metals like copper and aluminium, overshadowed seasonal demand benefits.

The 5.68% drop in Spandana Sphoorty Financial reflected concerns over rising rural credit risk. The microfinance sector has been under intense regulatory spotlight over borrower eligibility norms, while political noise ahead of state elections further aggravated risk perceptions. Stocks like Pearl Polymers and Tips Industries, down 5.32% and 5.18% respectively, show how market sentiment has turned against consumer non-durables and media, especially when earnings visibility is clouded.

Agri-tech company AGSTRA declined 5.06%, while Binani Industries also lost 5.04% in low-volume trades that were largely driven by continued uncertainty over corporate restructuring outcomes. Yaari Digital slipped 5.03%, part of a growing list of digital-first business models that remain unprofitable despite high user engagement.

Fertiliser player Madhya Bharat Agro Products fell 5.01%, hit by reports of reduced rural consumption and questions over subsidy disbursements. Essar Shipping also saw a 5.01% drop, as softer freight rates and regulatory uncertainty in emissions compliance hurt the logistics sector.

NACL Industries fell 5.00% to ₹198.74 after failing to sustain investor confidence in its agri-chemical export business, while Gensol Engineering also posted a 5.00% loss. Despite being a solar sector player, analysts have noted frothy valuations and low earnings consistency in recent quarters. SVLL Logistics fell 4.99%, with pressure stemming from rising fuel costs and weaker fleet utilisation metrics. Finally, Ganga Forging declined 4.80%, rounding off the losers list, with low liquidity and weak fundamentals weighing on micro-cap engineering stocks.

Are Economic Concerns Driving the Broader Market Weakness?

The decline in these 20 stocks coincides with a broader reassessment of India’s economic trajectory. Earlier this month, the World Bank lowered India’s FY26 GDP forecast to 6.3%, citing reduced private investment, uneven recovery in consumption, and global trade volatility. These warnings have started to reflect in institutional behaviour, with foreign portfolio investors turning net sellers across multiple sessions. Sectoral concerns—ranging from weak rural demand to rising regulatory costs—have amplified existing investor caution.

The rupee’s depreciation against the U.S. dollar has added to the macroeconomic discomfort. A weaker rupee increases input costs for manufacturers, especially those dependent on imported raw materials, while putting pressure on companies with dollar-denominated debt. Exporters, too, face volume pressures from reduced global demand, even if they benefit in terms of currency realisations.

Disruptions at India’s Attari trade corridor with Pakistan, a critical route for agricultural and FMCG exports, have only compounded difficulties for trade-facing companies. Several export-linked businesses, including UMA Exports and agri-input firms like NACL Industries, were directly impacted.

Why Are Indian Markets Diverging From Global Equities?

On the same day Indian markets corrected, global indices posted strong gains. U.S. equities rallied after President Donald Trump reaffirmed his commitment to maintaining Jerome Powell as Federal Reserve Chair and hinted at reducing China tariffs. These announcements calmed investor fears over rate volatility and rekindled hopes for a smoother global trade regime. As a result, the Nasdaq surged more than 2.5%, and the Dow Jones climbed over 1%.

India’s divergence from these global gains highlights how localised issues—ranging from weak credit offtake and slow capex growth to high retail inflation—are outweighing global positivity. Additionally, delays in regulatory clearances for high-profile IPOs, such as the National Stock Exchange’s proposed listing, continue to frustrate market participants. The lack of market depth is further fuelling volatility in mid- and small-cap names.

What Can Investors Expect in the Short Term?

The sell-off among India’s top 20 losers may not necessarily point to a structural market breakdown, but it does indicate heightened sensitivity to economic cues. In the short term, investors are expected to remain cautious, rotating funds into large-cap defensive stocks and staying away from high-beta mid-caps unless visibility on earnings and reforms improves.

Markets will closely track the upcoming Reserve Bank of India monetary policy announcements for cues on rate direction and liquidity. The trajectory of foreign portfolio flows and India’s Q4 earnings season are also expected to dictate short-term sentiment.

In this environment, retail investors may be better off avoiding speculative names and focusing on fundamentally strong counters with predictable cash flows and sound corporate governance. The April 23 decline could serve as a timely reminder that in high-valuation markets, earnings delivery matters more than narratives.