Tejas Networks Ltd Faces Sharp Decline Amid Heavy Trading and Institutional Sell-Off

Heavy Value Turnover and Trading Activity

On 12 Jan 2026, Tejas Networks Ltd (symbol: TEJASNET) emerged as one of the most actively traded stocks by value on the Indian equity markets. The total traded volume reached 86.98 lakh shares, translating into a staggering traded value of approximately ₹332.41 crores. This surge in trading activity underscores the intense market focus on the stock amid its recent price weakness.

The stock opened sharply lower at ₹399.00, down 4.35% from the previous close of ₹417.15, and continued to slide throughout the session. It touched an intraday low of ₹364.90, close to the new 52-week low of ₹367.10 recorded today, before settling near ₹365.50 at the last update time of 10:39:47 IST. The weighted average price indicates that the bulk of the volume traded closer to the lower price range, reflecting strong selling pressure.

Price Performance and Volatility

Tejas Networks has underperformed its sector significantly, with a one-day return of -11.14% compared to the Telecom Equipment & Accessories sector’s decline of just -1.27%. The stock has now recorded three consecutive days of losses, cumulatively falling by 18.09% over this period. This sustained downtrend has pushed the share price below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish technical setup.

Intraday volatility was notably high at 5.31%, calculated from the weighted average price, highlighting the stock’s turbulent trading environment. Such volatility often attracts speculative trading but also indicates uncertainty among investors regarding the company’s near-term prospects.

Institutional Interest and Delivery Volumes

Investor participation has notably increased, with delivery volumes on 9 Jan reaching 8.26 lakh shares, a sharp rise of 241.27% compared to the five-day average delivery volume. This spike suggests that institutional investors and large traders are actively repositioning their holdings, either offloading shares or adjusting exposure amid the stock’s weakening fundamentals and market sentiment.

Liquidity remains adequate for sizeable trades, with the stock’s liquidity supporting trade sizes of up to ₹1.08 crore based on 2% of the five-day average traded value. This level of liquidity ensures that institutional players can execute large orders without excessive price impact, which may explain the high turnover observed.

Fundamental and Market Context

Tejas Networks Ltd operates in the Telecom Equipment & Accessories industry, a sector currently facing headwinds due to global supply chain disruptions and competitive pressures. The company’s market capitalisation stands at ₹6,581.51 crores, categorising it as a small-cap stock. Despite its niche positioning, the stock’s recent performance has been disappointing.

MarketsMOJO’s latest assessment downgraded Tejas Networks from a 'Sell' to a 'Strong Sell' rating on 20 Oct 2025, reflecting deteriorating fundamentals and negative outlook. The Mojo Score currently stands at a low 1.0, signalling weak momentum and poor quality metrics. The Market Cap Grade is moderate at 3, but this does little to offset the negative sentiment prevailing among investors.

Technical Weakness and Sector Comparison

Technically, the stock’s breach of all major moving averages indicates a strong downtrend. The open gap down of 4.35% today further confirms bearish sentiment. Compared to the broader Sensex, which declined marginally by 0.45% on the same day, Tejas Networks’ sharp fall highlights its vulnerability amid sectoral and company-specific challenges.

Investor caution is further amplified by the stock’s underperformance relative to its sector peers, which have been more resilient despite the broader market volatility. The Telecom Equipment & Accessories sector’s modest decline of 1.27% contrasts starkly with Tejas Networks’ steep losses, suggesting company-specific factors are driving the sell-off.

Outlook and Investor Considerations

Given the current technical and fundamental backdrop, investors should exercise caution with Tejas Networks Ltd. The strong sell rating and negative momentum imply that further downside cannot be ruled out in the near term. Institutional activity and high delivery volumes indicate that large investors may be reducing exposure, which could exacerbate price weakness.

However, the stock’s high liquidity and volatility may attract short-term traders looking to capitalise on price swings. Long-term investors should closely monitor upcoming quarterly results and sector developments before considering fresh positions.

Summary

Tejas Networks Ltd’s recent trading session was characterised by intense selling pressure, high value turnover, and increased institutional participation. The stock’s sharp decline to a new 52-week low, combined with a downgrade to a strong sell rating, paints a challenging picture for investors. While liquidity and volatility remain high, the prevailing negative sentiment and technical weakness suggest caution is warranted. Investors should consider alternative opportunities within the sector or broader market until signs of a sustainable recovery emerge.

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