Zydus Lifesciences, EaseMyTrip, and JTL Industries slump as Indian equities face renewed volatility

What caused India’s stock market losses on April 16, 2025?

The Indian stock market experienced a sharp correction on April 16, 2025, as sentiment turned risk-averse following hawkish global central bank signals, elevated crude oil prices, and persistent inflation pressures. Investors reacted to mounting macroeconomic uncertainty by pulling back from recent gainers, especially in the mid-cap and small-cap segments. The day’s most notable stock losers reflected a combination of profit-taking, sector-specific concerns, and liquidity-driven corrections.

Foreign institutional investors remained net sellers, with the rupee under pressure against the U.S. dollar and rising U.S. bond yields prompting capital outflows. On the domestic front, caution ahead of Q4 FY25 earnings season and shifting expectations around Reserve Bank of India‘s interest rate trajectory compounded the weakness.

Why did BTML-RE1 fall by 40% in a single day?

BTML-RE1, the rights entitlement linked to Brightcom Group, fell dramatically by 40%, closing at ₹0.30. Such extreme movements are not uncommon with rights entitlements nearing expiry, especially when there’s low participation or negative sentiment around the parent company. The collapse reflects waning investor interest in subscribing to the issue and a lack of demand in the secondary market.

How did JTL Industries shares lose over 16%?

JTL Industries Ltd. saw one of the sharpest declines among active mid-cap stocks, plunging 16.42% to ₹67.60. Known for its ERW steel tubes and structural steel products, JTL Industries is sensitive to price fluctuations in raw materials like hot-rolled coils. Analysts believe investors were booking profits amid margin pressure concerns and subdued infrastructure-related orders. The heavy trading volume of over 1.13 crore shares suggests institutional activity played a role in the sell-off.

What drove the steep drop in EaseMyTrip stock?

Online travel booking platform EaseMyTrip (Easy Trip Planners Ltd.) declined by 7.88% to ₹12.28. This drop came amid broader weakness in consumer tech stocks and was accompanied by unusually high volume, exceeding 11 crore shares. Analysts attributed the fall to concerns about slowing travel demand and rising operational expenses, particularly in international flight bookings and hotel tie-ups. Increased competition and regulatory scrutiny on discounting practices may also be weighing on the stock’s outlook.

Why did Zydus Lifesciences lose over ₹5,700 crore in market cap?

Pharmaceutical major Zydus Lifesciences Ltd. lost 6.47%, closing at ₹826. The sharp sell-off erased over ₹5,700 crore in market capitalisation. Market participants cited ongoing concerns about U.S. FDA inspections, pricing erosion in the U.S. generics market, and delays in new drug approvals. Zydus had been a strong performer in previous quarters, but analysts believe some investors are locking in gains as sector-wide margin pressure resurfaces.

Which other stocks ranked among the biggest decliners?

GTECJAINX slipped 6.51% to ₹27.15 amid low volume, with no significant company-specific updates. Similarly, Balaji Forgings Ltd. (BALUFORGE) dropped 6.13% to ₹597.00, likely due to demand softness from the export-heavy automotive sector. Metal and engineering stocks broadly underperformed amid rising freight costs and weaker Eurozone industrial demand.

Almondz Global Securities Ltd. (ALMONDZ) fell 6.08% to ₹24.25, while UMA Exports Ltd. declined by 5.76% to ₹80.60, as agri-exporters dealt with unfavourable weather conditions and volatility in global food markets.

Sai Life Sciences Ltd. (SAILIFE) declined by 5.48% to ₹728.80, reflecting weakness across the contract manufacturing segment due to high input costs and lower visibility on repeat orders.

What role did market sentiment play in broader declines?

Investor sentiment remained subdued as global cues continued to dominate domestic trading dynamics. Bond yields remained elevated globally, with U.S. 10-year treasury yields touching multi-month highs. Domestic mutual funds turned selective, preferring high-quality large-cap names over volatile small-cap counters.

The sentiment shift was also visible in stocks such as Kesoram Industries Ltd., which declined 5.14% to ₹3.32, and Next Mediaworks Ltd., which fell 5.08% to ₹6.92, both trading near 52-week lows. These price levels suggest long-term investors are unwilling to hold low-visibility stocks amid macroeconomic uncertainties.

Did any low-float or illiquid stocks feature among the losers?

Yes, illiquid and low-volume counters also featured prominently in the top losers list. ABM International Ltd. (ABMINTLLTD) fell 5.04% to ₹47.25 with negligible volume. CineLine India Ltd. (CINELINE) dropped 5% to ₹96.66. These moves are often amplified by lack of liquidity and market depth, making the stocks highly reactive to even minor sell orders.

GENSOL Engineering Ltd., involved in solar EPC solutions, also saw a 5% drop to ₹122.68 despite no new announcements. The decline may be linked to sector-wide concerns over project execution delays and rising interest rates affecting renewable energy project financing.

How did real estate and textile stocks perform?

Real estate stock Atal Realtech Ltd. (ATALREAL) dropped 4.85% to ₹14.90, mirroring a broader slowdown in the affordable housing segment. VIP Clothing Ltd. (VIPCLOTHNG) also lost 4.89% to ₹39.85, reflecting margin pressure due to rising cotton prices and reduced discretionary clothing spends.

What is the near-term outlook for Indian equities after this sharp correction?

With global macro conditions turning less supportive and domestic earnings season underway, investors are expected to remain cautious. Analysts suggest avoiding momentum-chasing strategies in speculative names and instead recommend focusing on fundamentally strong large-cap stocks with steady earnings profiles.

Sectors likely to gain defensive traction include consumer staples, utilities, and select BFSI names with strong balance sheets. Technology, pharma, and discretionary sectors could remain volatile, especially as valuations adjust to shifting expectations on earnings and regulatory risks.