Twamev Construction & Infrastructure Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Price Action and Volatility

On the trading day, Twamev Construction & Infrastructure Ltd opened with a positive gap, rising 3.71% to an intraday high of ₹22.64. However, this optimism was short-lived as the stock succumbed to heavy selling, eventually touching a low of ₹20.74, marking a maximum daily loss of 4.99%. The last traded price settled at ₹21.39, down 2.02% from the previous close, triggering the lower circuit mechanism designed to curb excessive volatility.

The stock exhibited high intraday volatility of 6.24%, calculated from the weighted average price, underscoring the turbulent trading session. Notably, the weighted average price indicated that the majority of volume traded closer to the day’s low, signalling dominant bearish sentiment among market participants.

Volume and Liquidity Dynamics

Trading volumes were substantial, with total traded volume reaching approximately 1.15 lakh shares, translating to a turnover of ₹0.24 crore. Despite this, delivery volumes have been falling, with the latest figure on 13 Feb showing a 41.8% decline compared to the five-day average delivery volume. This drop in investor participation suggests that while short-term traders are active, long-term holders are retreating, further exacerbating the selling pressure.

Liquidity remains adequate for the stock, with the ability to handle trade sizes up to ₹0 crore based on 2% of the five-day average traded value. However, the persistent decline in delivery volumes raises concerns about sustained investor confidence.

Technical Indicators and Moving Averages

Technically, Twamev Construction & Infrastructure Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across multiple timeframes reflects a bearish trend and suggests limited near-term recovery prospects. The stock’s underperformance is further highlighted by its 1-day return of -2.66%, which contrasts sharply with the construction sector’s positive return of 0.71% and the Sensex’s modest gain of 0.22% on the same day.

Fundamental Assessment and Market Capitalisation

Twamev Construction & Infrastructure Ltd operates within the construction industry, a sector often sensitive to economic cycles and infrastructure spending trends. The company’s market capitalisation stands at ₹341 crore, categorising it as a micro-cap stock. This size often entails higher volatility and susceptibility to market sentiment swings.

MarketsMOJO’s latest assessment downgraded the stock’s mojo grade from Sell to Strong Sell on 24 Dec 2025, reflecting a deteriorating outlook. The current mojo score of 23.0 underscores significant fundamental weaknesses, including concerns over earnings quality, growth prospects, and risk factors. The market cap grade of 4 further indicates limited scale and liquidity challenges relative to larger peers.

Investor Sentiment and Panic Selling

The sharp fall and lower circuit hit are symptomatic of panic selling, where investors rush to exit positions amid uncertainty and negative news flow. The unfilled supply of shares at lower price levels suggests that sellers overwhelmed buyers, pushing the stock down to its regulatory limit. Such episodes often trigger stop-loss orders and algorithmic selling, amplifying downward momentum.

Given the stock’s underperformance relative to its sector and benchmark indices, investor confidence appears shaken. The consecutive two-day decline, amounting to a cumulative loss of approximately 2.05%, highlights sustained bearish pressure. This trend is concerning for shareholders and potential investors, signalling caution in the near term.

Outlook and Investor Considerations

For investors, the current scenario presents a challenging environment. The strong sell rating and negative technical indicators suggest that Twamev Construction & Infrastructure Ltd may continue to face downward pressure unless there is a significant improvement in fundamentals or sectoral tailwinds. The construction sector’s cyclical nature means that macroeconomic factors such as government infrastructure spending, interest rates, and raw material costs will heavily influence the stock’s trajectory.

Potential investors should weigh the risks of volatility and liquidity constraints inherent in micro-cap stocks. Meanwhile, existing shareholders might consider monitoring delivery volumes and price action closely to gauge whether the selling pressure is abating or intensifying.

Comparative Performance and Sector Context

While Twamev Construction & Infrastructure Ltd declined by 2.66% on the day, the broader construction sector gained 0.71%, and the Sensex edged up 0.22%. This divergence highlights the stock’s relative weakness and the market’s selective preference for other construction stocks with stronger fundamentals or better growth prospects. Investors seeking exposure to the sector may find more stable opportunities elsewhere, especially given the availability of alternatives with higher mojo scores and more favourable technical setups.

Summary

In summary, Twamev Construction & Infrastructure Ltd’s plunge to the lower circuit limit on 16 Feb 2026 reflects a confluence of heavy selling pressure, deteriorating fundamentals, and waning investor confidence. The stock’s technical weakness, combined with a strong sell mojo grade, signals caution for market participants. While the construction sector remains an important engine of economic growth, this particular micro-cap faces significant headwinds that investors must carefully consider.

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