Manaksia Aluminium Company Ltd Plunges to Lower Circuit Amid Intense Selling Pressure

Sharp Decline and Circuit Breaker Activation

The stock of Manaksia Aluminium Company Ltd (series BE) opened sharply lower, down 2.82% from the previous close, signalling immediate bearish sentiment. Throughout the trading session, the share price oscillated within a wide intraday range of ₹3.44, touching a high of ₹36.79 before succumbing to relentless selling pressure that dragged it down to the day’s low and circuit limit of ₹33.35. This represented the maximum permissible daily fall of 5%, a threshold designed to curb panic selling and provide a cooling-off period for investors.

The total traded volume stood at 5.29 lakh shares, with a turnover of ₹1.86 crore, indicating significant participation despite the negative momentum. Notably, the weighted average price was closer to the day’s low, underscoring that most trades were executed near the bottom end of the price band, reflecting strong supply and weak demand dynamics.

Prolonged Downtrend and Sector Context

Manaksia Aluminium’s stock has been under sustained pressure, recording losses for 13 consecutive trading sessions. Over this period, the stock has declined by a staggering 48.6%, far outpacing the sector’s fall of 3.95% on the day and the broader Sensex’s modest 0.59% decline. This prolonged sell-off highlights deep-rooted concerns among investors, possibly linked to company-specific challenges or broader market headwinds affecting the non-ferrous metals industry.

Despite the recent weakness, the stock remains above its 100-day and 200-day moving averages, suggesting some underlying long-term support. However, it currently trades below its short-term moving averages (5-day, 20-day, and 50-day), signalling bearish momentum in the near term.

Liquidity and Investor Participation

Liquidity in Manaksia Aluminium shares remains adequate for micro-cap standards, with the stock capable of handling trade sizes of approximately ₹0.01 crore based on 2% of its 5-day average traded value. However, delivery volumes have sharply declined, with only 6,920 shares delivered on 4 Feb 2026, down nearly 51% compared to the 5-day average. This drop in investor participation may indicate growing reluctance among long-term holders to accumulate shares amid the ongoing downtrend.

Mojo Score and Analyst Ratings

According to MarketsMOJO’s latest assessment dated 6 Jan 2026, Manaksia Aluminium Company Ltd holds a Mojo Score of 57.0, placing it in the ‘Hold’ category. This represents an upgrade from its previous ‘Sell’ rating, reflecting some improvement in the company’s fundamentals or market positioning. The market cap grade is 4, consistent with its micro-cap status and relatively modest ₹240 crore valuation.

While the upgrade signals cautious optimism, the current price action suggests that investors remain wary, possibly awaiting clearer signs of operational turnaround or sector recovery before committing fresh capital.

Market Sentiment and Panic Selling

The activation of the lower circuit limit is often symptomatic of panic selling, where investors rush to exit positions amid uncertainty or negative news flow. In Manaksia Aluminium’s case, the sustained decline and sharp intraday fall indicate a strong imbalance between supply and demand, with sellers overwhelming buyers. The wide intraday price range and volume concentration near the low price further confirm that selling pressure dominated throughout the session.

Such episodes can exacerbate volatility and erode investor confidence, especially in micro-cap stocks where liquidity constraints can amplify price swings. Market participants should therefore exercise caution and closely monitor developments before making investment decisions.

Sectoral and Broader Market Comparison

The Non-Ferrous Metals sector, to which Manaksia Aluminium belongs, declined by 3.95% on the day, underperforming the Sensex’s 0.59% fall. This sectoral weakness may be attributed to global commodity price fluctuations, demand concerns, or regulatory factors impacting metal producers. Manaksia Aluminium’s sharper decline relative to its peers suggests company-specific challenges or heightened risk perception among investors.

Investors should consider the broader industry trends alongside company fundamentals to gauge the sustainability of the current downtrend and identify potential entry points.

Investor Takeaway and Outlook

Manaksia Aluminium Company Ltd’s recent price action underscores the risks inherent in micro-cap stocks, particularly those operating in volatile sectors like non-ferrous metals. The stock’s 13-day losing streak and near 50% decline highlight the urgent need for investors to reassess their exposure and risk tolerance.

While the Mojo Score upgrade to ‘Hold’ suggests some fundamental improvement, the persistent selling pressure and circuit breaker activation indicate that the market remains unconvinced. Investors should watch for signs of stabilisation such as improved delivery volumes, narrowing price ranges, and positive sectoral cues before considering accumulation.

Given the stock’s liquidity profile and volatility, trading in Manaksia Aluminium requires careful timing and risk management. Diversification and consideration of superior alternatives, as identified by analytical tools, may offer better risk-adjusted returns in the current environment.

Summary of Key Metrics (5 Feb 2026)

• Closing Price: ₹33.35 (Lower Circuit)
• Day’s High: ₹36.79
• Day’s Low: ₹33.35
• Price Change: -₹1.75 (-4.99%)
• Total Volume: 5.29 lakh shares
• Turnover: ₹1.86 crore
• 13-day Return: -48.6%
• Sector Return (1D): -3.95%
• Sensex Return (1D): -0.59%
• Mojo Score: 57.0 (Hold, upgraded from Sell)
• Market Cap: ₹240 crore (Micro Cap)

Investors should continue to monitor Manaksia Aluminium’s price action closely, alongside sectoral developments and fundamental updates, to make informed decisions in this challenging market phase.

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