Indian Metals & Ferro Alloys Ltd Falls 18.92%: 3 Key Factors Driving the Sharp Decline

Jan 10 2026 03:00 PM IST
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Indian Metals & Ferro Alloys Ltd experienced a challenging week from 5 to 9 January 2026, with its stock price declining sharply by 18.92%, significantly underperforming the Sensex which fell 2.62% over the same period. The week began with the stock hitting a new 52-week and all-time high of Rs.1511.05 on 5 January, but subsequent days saw sustained selling pressure, culminating in a closing price of Rs.1216.35 on 9 January. This review analyses the key events and market dynamics that shaped the stock’s volatile performance during the week.




Key Events This Week


Jan 5: New 52-week and all-time high at Rs.1511.05


Jan 6: Intraday low hit amid heavy price pressure


Jan 7-9: Continued decline with volume fluctuations


Jan 9: Week closes at Rs.1216.35 (-0.16% on day)





Week Open
Rs.1,456.05

Week Close
Rs.1,216.35
-18.92%

Week High
Rs.1,511.05

vs Sensex
-16.30%



5 January: Stock Hits New 52-Week and All-Time High at Rs.1511.05


Indian Metals & Ferro Alloys Ltd began the week on a strong note, reaching a new 52-week and all-time high of Rs.1511.05 on 5 January 2026. This milestone reflected a remarkable rally over the past year, with the stock having surged approximately 174.2% from its 52-week low of Rs.550.85. Despite the new peak, the stock closed the day at Rs.1,456.05, down 2.94% from the previous close, indicating some profit-taking after the record high.


The broader market was relatively stable, with the Sensex declining marginally by 0.18%. The stock’s ability to maintain levels above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, suggested a strong technical foundation. The Mojo Score stood at 50.0 with a ‘Hold’ rating, upgraded from ‘Sell’ in November 2025, reflecting improved fundamentals and market positioning.



6 January: Sharp Intraday Decline Amid Price Pressure


The following day, Indian Metals & Ferro Alloys Ltd faced significant selling pressure, with the stock price plunging 11.28% to close at Rs.1,291.85. Intraday, it hit a low of Rs.1,305, marking a 10.37% drop from the previous close. This decline was notably sharper than the broader Sensex’s 0.19% fall and the Ferro & Silica Manganese sector’s 5.8% drop, indicating company-specific weakness.


Technically, the stock slipped below its 5-day and 20-day moving averages, signalling short-term weakness despite remaining above longer-term averages. The two-day cumulative decline exceeded 11%, erasing much of the recent gains. The Mojo Grade remained ‘Hold’, consistent with the observed volatility and neutral outlook.




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7 to 9 January: Continued Downtrend with Moderate Volume


From 7 to 9 January, the stock continued its downward trajectory, closing at Rs.1,270.30 (-1.67%), Rs.1,218.30 (-4.09%), and Rs.1,216.35 (-0.16%) respectively. Volumes fluctuated, with a notable spike on 6 January but relatively lower activity on subsequent days. The Sensex also declined over this period, with a sharper drop on 8 and 9 January, falling 1.41% and 0.89% respectively.


The stock’s persistent weakness below short-term moving averages and the absence of a strong rebound suggested consolidation or correction after the earlier rally. Despite this, the stock remained above its 50-day and longer-term averages, indicating that the longer-term uptrend was not yet decisively broken.




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Daily Price Comparison: Indian Metals & Ferro Alloys Ltd vs Sensex


















































Date Stock Price Day Change Sensex Day Change
2026-01-05 Rs.1,456.05 -2.94% 37,730.95 -0.18%
2026-01-06 Rs.1,291.85 -11.28% 37,657.70 -0.19%
2026-01-07 Rs.1,270.30 -1.67% 37,669.63 +0.03%
2026-01-08 Rs.1,218.30 -4.09% 37,137.33 -1.41%
2026-01-09 Rs.1,216.35 -0.16% 36,807.62 -0.89%



Key Takeaways from the Week


Positive Signals: The stock’s initial surge to a new 52-week and all-time high demonstrated strong underlying momentum and investor interest. Its position above long-term moving averages suggests that the fundamental uptrend remains intact despite short-term weakness.


Cautionary Signals: The sharp decline starting 6 January, with a cumulative drop of nearly 19% over the week, highlights significant selling pressure and volatility. The stock underperformed both the Sensex and its sector, indicating company-specific challenges or profit-taking. The breach of short-term moving averages signals potential resistance and a need for consolidation before any sustained recovery.


Volume and Sentiment: Elevated volumes on the day of the sharp decline suggest active investor repositioning. The Mojo Grade of ‘Hold’ reflects a neutral stance amid mixed signals, balancing strong historical returns against recent price pressure.



Conclusion


Indian Metals & Ferro Alloys Ltd’s week was marked by a dramatic reversal from record highs to a steep correction, resulting in an 18.92% weekly loss. While the stock’s long-term fundamentals and technical positioning remain relatively robust, the recent volatility and underperformance relative to the Sensex and sector peers indicate a period of consolidation and caution. Investors should monitor the stock’s ability to stabilise above key moving averages and watch for signs of renewed momentum in the coming weeks.






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