HFCL Ltd Drops 9.94% This Week: 2 Key Factors Behind the Decline

Jan 24 2026 04:05 PM IST
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HFCL Ltd’s shares declined sharply by 9.94% over the week ending 23 January 2026, significantly underperforming the Sensex which fell 3.31% in the same period. The stock faced sustained selling pressure amid deteriorating technical momentum and fresh 52-week lows, reflecting ongoing financial challenges and market headwinds in the telecom equipment sector.




Key Events This Week


Jan 19: Stock opens at Rs.66.30, down 2.37%


Jan 20: Bearish momentum intensifies, stock falls 4.48%


Jan 22: Slight recovery with 0.56% gain amid positive Sensex movement


Jan 23: Stock hits 52-week low, closes at Rs.61.16 (-1.99%)





Week Open
Rs.67.91

Week Close
Rs.61.16
-9.94%

Week High
Rs.66.30

Sensex Change
-3.31%



Monday, 19 January 2026: Weak Start Amid Market Decline


HFCL Ltd began the week at Rs.66.30 on 19 January, down 2.37% from the previous Friday’s close of Rs.67.91. This decline came alongside a broader market sell-off, with the Sensex falling 0.49% to 36,650.97. The stock’s volume was robust at 959,361 shares, signalling active trading despite the negative sentiment. The early weakness foreshadowed the bearish momentum that would dominate the week.



Tuesday, 20 January 2026: Bearish Momentum Intensifies


On 20 January, HFCL’s share price plunged further by 4.48% to Rs.63.33, marking the steepest single-day drop of the week. This decline was sharper than the Sensex’s 1.82% fall to 35,984.65, indicating stock-specific pressures. The day’s trading volume decreased to 665,371 shares but remained significant. The sharp fall coincided with technical indicators signalling a bearish downturn, as detailed in a report highlighting deteriorating momentum and a downgrade to a Strong Sell rating. The stock’s failure to hold above Rs.68.68 and bearish MACD and moving averages underscored the negative trend.




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Wednesday, 21 January 2026: Continued Downtrend Despite Market Stability


The downtrend persisted on 21 January, with HFCL closing at Rs.62.05, down 2.02% on the day. The Sensex also declined but by a smaller 0.47% to 35,815.26. Trading volume rose to 915,252 shares, reflecting sustained investor activity amid the negative price action. Technical analysis indicated that the stock remained below all key moving averages, reinforcing the bearish outlook. The lack of positive catalysts and ongoing financial pressures contributed to the continued weakness.



Thursday, 22 January 2026: Minor Rebound on Positive Market Sentiment


On 22 January, HFCL bucked the downward trend with a modest gain of 0.56%, closing at Rs.62.40. This came as the Sensex rallied 0.76% to 36,088.66, recovering some losses from earlier in the week. However, the stock’s volume dropped to 512,515 shares, suggesting cautious participation. Despite the slight uptick, the overall technical picture remained negative, with the stock still trading below critical moving averages and facing sector headwinds.



Friday, 23 January 2026: New 52-Week Low Amid Financial Pressures


The week ended on a weak note for HFCL as the stock fell 1.99% to close at Rs.61.16, near its 52-week low of Rs.60.73. Intraday lows touched Rs.60.80, marking a fresh annual low. The Sensex also declined sharply by 1.33% to 35,609.90. The stock’s volume surged to 1,325,261 shares, indicating heavy selling pressure. This decline was attributed to continued financial challenges, including a significant contraction in profit after tax by 80.77% over six months, a 24.12% drop in net sales, and increased interest expenses by 25.11%. Additionally, high promoter share pledging at 56.93% added to market concerns. Despite a manageable debt-to-EBITDA ratio of 1.36 times, the deteriorating fundamentals and weak sector outlook weighed heavily on the stock.



















































Date Stock Price Day Change Sensex Day Change
2026-01-19 Rs.66.30 -2.37% 36,650.97 -0.49%
2026-01-20 Rs.63.33 -4.48% 35,984.65 -1.82%
2026-01-21 Rs.62.05 -2.02% 35,815.26 -0.47%
2026-01-22 Rs.62.40 +0.56% 36,088.66 +0.76%
2026-01-23 Rs.61.16 -1.99% 35,609.90 -1.33%



Key Takeaways from the Week


Negative Technical Momentum: The stock’s technical indicators, including MACD, moving averages, and Bollinger Bands, confirmed a bearish trend throughout the week. The downgrade to a Strong Sell rating and a low Mojo Score of 23.0 reflect this deteriorating momentum.


Financial Strain Evident: HFCL’s ongoing financial challenges, such as a steep 80.77% decline in PAT over six months and a 24.12% drop in net sales, have weighed heavily on investor sentiment. Rising interest expenses and high promoter share pledging (56.93%) have further exacerbated selling pressure.


Underperformance vs Sensex: The stock’s 9.94% weekly decline significantly outpaced the Sensex’s 3.31% fall, highlighting company-specific weaknesses amid broader market volatility.


Short-Term Relief Insufficient: The minor recovery on 22 January was insufficient to reverse the overall downtrend, as fundamental and technical headwinds persisted.




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Conclusion: A Challenging Week Reflecting Broader Struggles


HFCL Ltd’s performance this week underscores the significant challenges facing the company amid a difficult operating environment. The sharp 9.94% decline, driven by worsening technical signals and deteriorating financial metrics, highlights the stock’s vulnerability. Despite some monthly technical indicators suggesting potential longer-term support, the prevailing trend remains negative. Investors should note the high promoter share pledging and ongoing profit contractions as cautionary signals. The stock’s underperformance relative to the Sensex and its downgrade to a Strong Sell rating reinforce the need for careful monitoring of future developments.


Overall, HFCL Ltd’s week was marked by sustained selling pressure and fresh lows, reflecting both sectoral headwinds and company-specific financial stress. The coming weeks will be critical in determining whether the stock can stabilise or if further declines are likely.






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