GVK Power & Infrastructure Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Stock Performance and Market Context

GVK Power & Infrastructure Ltd, a micro-cap player in the construction industry with a market capitalisation of ₹466 crores, witnessed a significant drop in its share price, hitting the lower circuit band of 2% at ₹2.92 intraday before settling marginally higher at ₹2.94. The stock’s intraday high was ₹2.99, indicating a narrow trading range constrained by the circuit filter. Total traded volume stood at 3.21 lakh shares, with turnover amounting to just ₹0.094 crore, signalling relatively low liquidity despite the heavy selling.

In comparison, the broader Sensex gained 0.40% and the construction sector index rose 0.44% on the same day, highlighting GVK Power’s underperformance by approximately 1.4 percentage points. The stock has now declined by 3.29% over the past three trading sessions, reflecting sustained bearish momentum.

Technical Indicators and Investor Sentiment

Technically, GVK Power & Infrastructure is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a persistent downtrend. The stock is currently just 4.08% above its 52-week low of ₹2.82, raising concerns about further downside risk. Delivery volumes have also dropped sharply; on 20 Feb 2026, delivery volume was 52,570 shares, down 43.64% from the five-day average, indicating waning investor participation and possible exit by long-term holders.

The combination of falling prices, declining volumes, and the lower circuit hit suggests panic selling and unfilled supply dominating the market. Investors appear reluctant to absorb the available shares, leading to a liquidity squeeze and exacerbating price declines.

Mojo Score and Analyst Ratings

MarketsMOJO assigns GVK Power & Infrastructure a Mojo Score of 12.0, categorising it as a Strong Sell. This rating was upgraded from a Sell grade on 26 Feb 2024, reflecting deteriorating fundamentals and weak market positioning. The company’s market cap grade is 4, indicating its micro-cap status and associated liquidity risks. The downgrade in rating aligns with the recent price weakness and technical breakdown, signalling caution for investors.

Sectoral and Industry Challenges

The construction sector has faced headwinds due to rising input costs, project delays, and subdued demand in infrastructure development. GVK Power & Infrastructure, operating within this challenging environment, has struggled to maintain investor confidence. The stock’s persistent underperformance relative to its sector peers further emphasises the company’s vulnerability amid sector-wide pressures.

Additionally, the company’s limited liquidity and micro-cap status make it susceptible to sharp price swings on relatively modest volumes, as evidenced by the current lower circuit event. This volatility can deter institutional investors, compounding the downward pressure on the stock.

Implications for Investors

For existing shareholders, the lower circuit hit and ongoing downtrend suggest a need to reassess exposure to GVK Power & Infrastructure. The stock’s technical weakness, combined with negative analyst sentiment and sectoral challenges, points to potential further downside in the near term. Investors should monitor volume patterns and price action closely to gauge whether selling pressure abates or intensifies.

New investors are advised to exercise caution given the stock’s micro-cap status, limited liquidity, and recent price volatility. Diversification and consideration of more stable sectoral plays may be prudent until clearer signs of recovery emerge.

Outlook and Conclusion

GVK Power & Infrastructure Ltd’s recent plunge to the lower circuit limit highlights the intense selling pressure and fragile investor sentiment surrounding the stock. The micro-cap construction firm faces significant headwinds from both sectoral challenges and its own deteriorating fundamentals, as reflected in its Strong Sell Mojo Grade and declining price trend.

While the stock remains close to its 52-week low and below all major moving averages, the lack of buyer interest and falling delivery volumes suggest that the downtrend may persist in the short term. Investors should remain vigilant and consider alternative opportunities within the construction sector or broader market that offer stronger fundamentals and better liquidity.

In summary, GVK Power & Infrastructure’s lower circuit event serves as a cautionary signal of heightened risk and underscores the importance of thorough analysis before committing capital to micro-cap stocks in volatile sectors.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →