Nexus Select Trust Faces Continued Volatility Amid Financial Strain and Stake Reduction

Nexus Select Trust, a midcap player in the construction and real estate sector, has experienced significant volatility today, hitting a new 52-week low of Rs. 120.46. This decline marks a continued downturn for the stock, which has now fallen for six consecutive days, resulting in a total drop of 6.94% during this period. Notably, the stock underperformed its sector by 5.41% today.
In terms of technical indicators, Nexus Select Trust is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a bearish trend. The company's financial metrics reveal a high debt-equity ratio of 0.37 times and a low operating profit to interest ratio of 3.97 times, indicating potential financial strain. Additionally, promoter confidence appears to be waning, with a 20.83% reduction in their stake over the last quarter.

Despite these challenges, the company boasts a high dividend yield of 6.27%, which may attract income-focused investors. However, the stock's one-year performance stands at -2.98%, contrasting sharply with the Sensex's gain of 5.87% during the same period.