SEL Manufacturing Company Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

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SEL Manufacturing Company Ltd (SEL), a micro-cap player in the Garments & Apparels sector, witnessed a sharp decline on 26 Feb 2026, hitting its lower circuit limit amid intense selling pressure. The stock closed at ₹28.52, down 4.97% on the day, marking its fourth consecutive session of losses and reflecting growing investor apprehension.
SEL Manufacturing Company Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Intraday Price Action and Volatility

The stock opened with a cautious tone and experienced significant volatility throughout the trading session. SEL Manufacturing touched an intraday high of ₹30.90, representing a 3.45% gain from the previous close, but succumbed to relentless selling, sliding to an intraday low of ₹28.38, a 4.99% drop. The weighted average price for the day was closer to the low end, indicating that the bulk of trading volume occurred near the lower price levels.

Intraday volatility was notably high at 6.74%, underscoring the unsettled market sentiment surrounding the stock. This heightened price fluctuation is symptomatic of panic selling and unfilled supply, as sellers aggressively offloaded shares amid limited buying interest.

Volume and Liquidity Dynamics

Trading volumes remained modest, with total traded volume recorded at 0.12114 lakh shares, translating to a turnover of ₹0.035 crore. Despite the relatively low volume, the stock’s liquidity is considered adequate for small trade sizes, given its micro-cap status and a market capitalisation of ₹97 crore.

Delivery volumes on 25 Feb surged to 14,670 shares, a 143.21% increase compared to the five-day average, signalling rising investor participation but predominantly on the sell side. This spike in delivery volume ahead of the price drop suggests that shareholders were offloading positions in anticipation of further weakness.

Technical Indicators and Moving Averages

SEL Manufacturing’s technical profile remains weak, with the stock trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day. This broad-based downward trend confirms the bearish momentum and indicates a lack of near-term support from technical levels.

The stock’s price band of 5% was fully utilised on the downside, triggering the lower circuit breaker and halting further declines for the day. This regulatory mechanism aims to prevent excessive volatility but also highlights the severity of the selling pressure.

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Sector and Market Context

SEL Manufacturing underperformed its sector peers significantly, with a one-day return of -4.92% compared to the Garments & Apparels sector’s decline of just -0.49%. The broader Sensex remained largely flat, gaining a marginal 0.05%, highlighting that the stock’s weakness is company-specific rather than market-driven.

The stock’s four-day losing streak has resulted in a cumulative decline of 13.99%, reflecting sustained negative sentiment. This underperformance relative to the sector and benchmark indices signals deteriorating fundamentals or investor confidence.

Fundamental and Rating Overview

SEL Manufacturing Company Ltd currently holds a Mojo Score of 9.0, categorised as a Strong Sell by MarketsMOJO, an upgrade in severity from its previous Sell rating as of 29 Dec 2025. This downgrade reflects worsening financial metrics and a negative outlook on the company’s near-term prospects.

The company’s market cap grade stands at 4, consistent with its micro-cap status, which often entails higher volatility and risk. Investors should be cautious given the stock’s fragile technical position and the absence of any immediate catalysts to reverse the downtrend.

Investor Sentiment and Outlook

The sharp fall to the lower circuit limit is indicative of panic selling, where investors rush to exit positions amid fears of further losses. The unfilled supply of shares at lower price levels suggests that demand is insufficient to absorb the selling pressure, prolonging the downtrend.

Given the stock’s current trajectory and technical weakness, short-term investors may want to avoid fresh exposure until signs of stabilisation emerge. Long-term holders should monitor quarterly results and sector developments closely to reassess their positions.

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Conclusion

SEL Manufacturing Company Ltd’s plunge to the lower circuit on 26 Feb 2026 underscores the mounting selling pressure and fragile investor sentiment surrounding this micro-cap garment stock. The combination of technical weakness, high volatility, and a deteriorating rating profile paints a cautious picture for investors.

While the broader market and sector remain relatively stable, SEL’s underperformance and unfilled supply at lower price points suggest that the stock may continue to face headwinds in the near term. Investors should exercise prudence and consider alternative opportunities until a clear turnaround is evident.

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