Rajesh Exports Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Feb 06 2026 11:00 AM IST
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Rajesh Exports Ltd, a key player in the Gems, Jewellery and Watches sector, witnessed a sharp decline on 6 February 2026, hitting its lower circuit limit with a maximum daily loss of 5.0%. The stock closed at ₹171.52, down ₹9.02 from the previous close, reflecting intense selling pressure and panic among investors.
Rajesh Exports Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Intraday Price Movement and Trading Activity

The stock of Rajesh Exports Ltd (series BZ) opened the day with a high of ₹177.40 but quickly succumbed to selling pressure, touching an intraday low of ₹171.53, which also became the closing price. This represented a decline of 4.99% from the previous day’s close, triggering the lower circuit mechanism that restricts further fall in price to prevent excessive volatility.

Trading volumes were moderate, with a total traded volume of approximately 48,626 shares (0.48626 lakh) and a turnover of ₹0.84 crore. Notably, the weighted average price indicated that a significant portion of the volume was traded near the day’s low, signalling that sellers dominated the session and buyers were scarce at higher price levels.

Market Context and Sector Comparison

Rajesh Exports underperformed its sector, which saw a marginal decline of 0.28% on the same day. The broader Sensex index also fell by 0.55%, indicating a generally cautious market environment. However, the stock’s 5.0% drop was markedly sharper than both the sector and benchmark indices, highlighting company-specific concerns or profit-booking pressures.

The stock’s recent trend showed a reversal after three consecutive days of gains, suggesting that the rally may have exhausted short-term buying interest. This reversal was accompanied by a surge in delivery volumes, which rose by 181.26% to 24,870 shares on 5 February compared to the five-day average, indicating rising investor participation but also increased selling intent.

Technical Indicators and Moving Averages

From a technical standpoint, Rajesh Exports’ last traded price remains above its 5-day and 20-day moving averages, but below the 50-day, 100-day, and 200-day averages. This mixed picture suggests short-term support but longer-term resistance, which may be contributing to the current volatility and selling pressure.

The stock’s price band of 5% is a regulatory limit on daily price movement, and hitting the lower circuit indicates that the stock has reached the maximum permissible decline for the day, often a sign of panic selling or unfilled supply overwhelming demand.

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Fundamental and Market Capitalisation Overview

Rajesh Exports Ltd is classified as a small-cap company with a market capitalisation of approximately ₹5,135 crore. The company operates within the Gems, Jewellery and Watches industry, a sector known for its sensitivity to global economic conditions, currency fluctuations, and consumer demand trends.

According to the latest MarketsMOJO assessment dated 31 December 2025, the stock’s Mojo Score stands at 41.0, with a Mojo Grade of Sell, downgraded from Hold. This downgrade reflects deteriorating fundamentals or technical outlook, signalling caution for investors. The Market Cap Grade is 3, indicating moderate size and liquidity constraints relative to larger peers.

Investor Sentiment and Supply-Demand Dynamics

The sharp fall and lower circuit hit suggest a scenario of panic selling, where investors rush to exit positions amid negative sentiment or adverse news flow. The unfilled supply at lower price levels indicates that sellers are willing to offload shares aggressively, but buyers are hesitant to step in, possibly awaiting further price correction or clarity on company prospects.

Such intense selling pressure often leads to a temporary imbalance in the order book, causing the stock to hit circuit limits. While this mechanism protects against extreme volatility, it also signals heightened risk and uncertainty surrounding the stock in the near term.

Outlook and Strategic Considerations for Investors

Given the current technical and fundamental indicators, investors should exercise caution with Rajesh Exports Ltd. The downgrade to a Sell rating by MarketsMOJO and the recent price action suggest that the stock may face continued headwinds. Monitoring sector trends, global economic cues, and company-specific developments will be crucial before considering fresh exposure.

For those holding the stock, evaluating alternative investment opportunities within the Gems, Jewellery and Watches sector or broader market may be prudent to mitigate downside risk.

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Comparative Performance and Sectoral Implications

Rajesh Exports’ underperformance relative to its sector and the broader market highlights the challenges faced by the company amid current market conditions. The Gems, Jewellery and Watches sector has been grappling with fluctuating gold prices, changing consumer preferences, and global trade uncertainties, all of which can impact revenue and profitability.

Investors should consider these macro factors alongside company-specific metrics when analysing the stock’s future trajectory. The stock’s liquidity, while adequate for moderate trade sizes (₹0.05 crore), may limit large institutional participation, potentially exacerbating volatility during periods of market stress.

Summary

In summary, Rajesh Exports Ltd’s fall to the lower circuit on 6 February 2026 underscores significant selling pressure and investor apprehension. The 5.0% decline, combined with a downgrade to a Sell rating and a modest market cap, paints a cautious picture for the stock. While short-term technical support exists, longer-term resistance and sectoral headwinds suggest that investors should remain vigilant and consider alternative opportunities.

Continued monitoring of trading volumes, price action, and fundamental updates will be essential to gauge whether the stock can stabilise or if further downside is imminent.

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