Rajesh Exports Drops 15.01%: 6 Key Factors Behind the Sharp Weekly Decline

29 December 2025: Opening Gap Down and Lower Circuit Hit Signal Bearish Sentiment

Rajesh Exports commenced the week with a significant gap down, opening at ₹201.60, a 5.0% drop from the previous close. The stock immediately hit its lower circuit limit of ₹202.15, closing the day at this level without any intraday recovery. This marked the first of three consecutive days where the stock was locked at its lower circuit, reflecting intense selling pressure and panic among investors.

Volume was subdued at 33,708 shares, indicating a lack of buying interest to absorb the selling. Despite the broader market’s marginal gain of 0.06% on the Sensex, Rajesh Exports underperformed its sector by 5.19%, highlighting company-specific concerns. Technical indicators showed the stock trading below its 5-day moving average but still above longer-term averages, suggesting short-term weakness amid longer-term support.

30 December 2025: Continued Selling Pressure Locks Stock at Lower Circuit

The downtrend intensified on 30 December as Rajesh Exports again hit the lower circuit, closing at ₹192.05 with a 5.0% loss. The stock remained locked at this price throughout the session, signalling persistent bearish sentiment and absence of buyers willing to step in. Trading volumes remained low at approximately 23,427 shares, with delivery volumes plunging by nearly 98% compared to the five-day average, indicating waning investor participation.

While the Sensex declined marginally by 0.08%, Rajesh Exports’ 5.0% drop underscored its underperformance relative to both the benchmark and sector peers. Technically, the stock was trading below its 5-day and 20-day moving averages but still above the 50-day and longer-term averages, suggesting that while short-term momentum was weak, some longer-term support remained intact.

31 December 2025: Third Lower Circuit Hit Amid Intensified Selling and Bearish Technicals

On the final trading day of 2025, Rajesh Exports continued its downward spiral, hitting the lower circuit limit again and closing at ₹182.55, down 4.95%. This marked a cumulative loss of 17.85% over four sessions. Unlike previous days, trading volumes surged to 2.57 lakh shares, reflecting heightened panic selling, though delivery volumes remained sharply lower by over 95% compared to the five-day average.

Technically, the stock slipped below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a clear bearish trend. The stock underperformed its sector, which gained 1.64%, and lagged behind the Sensex’s 0.17% rise, highlighting company-specific weakness amid a resilient market backdrop.

1 January 2026: Downgrade to Sell and Technical Momentum Shift

Rajesh Exports faced a critical turning point as MarketsMOJO downgraded the stock from a Hold to a Sell rating, citing mixed financials and bearish technicals. Despite very strong quarterly results with net sales up 41.8% and PAT surging 466.4%, the company’s long-term operating profit has declined at an annualised rate of -25.19%, and return on equity remains low at 0.8%.

The downgrade was driven primarily by a shift in technical momentum from mildly bullish to mildly bearish. Daily moving averages turned bearish, and Bollinger Bands on weekly and monthly charts indicated increased downward volatility. The stock closed at ₹184.00, down 3.94%, continuing its underperformance relative to the Sensex and sector peers.

2 January 2026: Slight Recovery Amid Lingering Caution

On the first trading day of 2026, Rajesh Exports showed a modest recovery, closing at ₹180.35, up 0.64%. This slight gain followed a week of steep declines and may indicate some short-term consolidation. However, the stock remains well below its previous week’s open and continues to underperform the Sensex, which gained 0.81% on the day.

Volume was moderate at 36,692 shares, suggesting cautious participation. The technical backdrop remains bearish, with the stock trading below key moving averages and momentum indicators signalling increased downside risk. Investors are likely to remain vigilant, monitoring for any signs of stabilisation or further deterioration.

Key Takeaways

Significant Weekly Decline: Rajesh Exports’ 15.01% weekly loss starkly contrasts with the Sensex’s 1.35% gain, highlighting company-specific challenges amid a stable market.

Lower Circuit Hits Reflect Panic Selling: The stock hit lower circuit limits on three consecutive days, signalling intense selling pressure and investor unease.

Technical Momentum Shift: A downgrade to Sell and bearish technical indicators, including moving averages and Bollinger Bands, suggest increased downside risk in the near term.

Strong Quarterly Financials Offset by Weak Long-Term Growth: Despite impressive recent quarterly results, long-term operating profit decline and low ROE weigh on the outlook.

Volume and Delivery Trends Indicate Reduced Investor Participation: Sharp declines in delivery volumes alongside volatile trading volumes point to cautious market behaviour.

Sector and Market Context: The Gems, Jewellery and Watches sector showed resilience, underscoring that Rajesh Exports’ weakness is largely company-specific.

Conclusion

Rajesh Exports Ltd. experienced a turbulent week marked by steep price declines, multiple lower circuit hits, and a downgrade to a Sell rating. While the company’s recent quarterly financial performance was robust, the persistent downtrend and shift in technical momentum reflect growing investor caution. The stock’s underperformance relative to the Sensex and sector peers, combined with weak long-term growth metrics, suggests that the current phase is one of consolidation with a bearish bias. Market participants should closely monitor technical support levels and sector developments as the stock navigates this challenging environment.

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