Rajesh Exports Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Price Movement and Market Reaction

The stock opened sharply lower with a gap down of 2.83%, signalling immediate bearish sentiment among traders. Throughout the trading session, Rajesh Exports Ltd’s share price touched an intraday low of ₹169.03, marking a 5.0% drop from the previous close. The weighted average price indicated that the majority of the volume traded was closer to the day’s low, underscoring persistent selling interest.

Trading volumes stood at 58,549 shares (0.58549 lakh), with a turnover of ₹0.998 crore, reflecting moderate liquidity for a small-cap stock with a market capitalisation of ₹5,309 crore. Despite this, the stock’s liquidity was sufficient to accommodate trades up to ₹0.06 crore based on 2% of the five-day average traded value, suggesting that the decline was driven by genuine selling rather than illiquidity.

Technical Indicators and Moving Averages

Rajesh Exports Ltd is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning signals a bearish trend and weak momentum in the near to medium term. The stock has also underperformed its sector, the Gems, Jewellery and Watches index, by 3.82% on the day, while the broader Sensex managed a marginal gain of 0.06%, highlighting the stock-specific nature of the sell-off.

Notably, the stock has been on a consecutive decline for the past three trading sessions, losing approximately 10.5% in total returns during this period. This sustained downtrend has likely exacerbated panic selling among retail and institutional investors alike.

Investor Participation and Delivery Volumes

Investor participation appears to be waning, with delivery volumes on 13 Feb 2026 falling by 27.09% compared to the five-day average, down to 13,060 shares. This decline in delivery volume suggests that fewer investors are holding the stock for the long term, possibly opting to exit positions amid the ongoing price weakness. The combination of falling delivery volumes and heavy intraday selling points to a lack of conviction among buyers, further pressuring the stock downward.

Mojo Score and Analyst Ratings

According to MarketsMOJO’s latest assessment dated 31 Dec 2025, Rajesh Exports Ltd’s Mojo Score stands at 47.0, categorised as a ‘Sell’ grade. This represents a downgrade from the previous ‘Hold’ rating, reflecting deteriorating fundamentals and weakening price momentum. The company’s market cap grade is 3, indicating a small-cap status with moderate market presence but higher volatility risk.

The downgrade aligns with the recent price action and technical signals, suggesting that investors should exercise caution. The stock’s underperformance relative to its sector and the broader market further supports the negative outlook.

Sectoral and Market Context

The Gems, Jewellery and Watches sector has experienced mixed performance recently, with some stocks showing resilience while others face headwinds from fluctuating gold prices, regulatory changes, and shifting consumer demand. Rajesh Exports Ltd’s sharp decline contrasts with the sector’s modest 0.27% loss on the day, indicating company-specific challenges rather than broad sector weakness.

Given the stock’s small-cap status and recent price volatility, investors should carefully monitor developments related to the company’s operational performance, gold price trends, and any regulatory updates that could impact earnings and valuations.

Outlook and Investor Considerations

The hitting of the lower circuit limit at 5% loss signals extreme selling pressure and a potential pause in trading to prevent further immediate declines. However, the underlying factors driving this sell-off—such as weak technicals, falling investor participation, and a downgrade in analyst ratings—suggest that the stock may face continued headwinds in the near term.

Investors should be wary of panic selling but also recognise the risks inherent in holding a stock with deteriorating fundamentals and negative momentum. A cautious approach involving close monitoring of price action, volume trends, and sector developments is advisable before considering fresh exposure.

Summary

Rajesh Exports Ltd’s stock performance on 16 Feb 2026 highlights significant market stress, with the share price hitting the lower circuit limit amid heavy selling and a maximum daily loss of nearly 5%. The stock’s technical weakness, combined with a downgrade to a ‘Sell’ rating and falling investor participation, paints a cautious picture for investors. While the Gems, Jewellery and Watches sector remains relatively stable, company-specific challenges have triggered this sharp correction.

For investors, the current scenario calls for prudence and thorough analysis before committing capital. Monitoring the stock’s recovery attempts, sectoral trends, and fundamental updates will be crucial in assessing future investment potential.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →