Extended Downtrend and Underperformance Against Benchmarks
Indo Amines has been on a consistent downward trajectory, recording losses for eight consecutive trading sessions. Over this period, the stock has declined by approximately 9.84%, signalling persistent selling pressure. When compared to the broader market, the underperformance is stark. The benchmark Sensex has remained relatively stable, showing a marginal decline of just 0.06% over the past week, while Indo Amines has fallen by 7.78% in the same timeframe.
Looking at longer-term returns, the stock’s year-to-date performance is deeply negative at -28.22%, contrasting sharply with the Sensex’s positive return of 8.65%. Over the past year, Indo Amines has declined by 25.95%, whereas the Sensex has gained 7.31%. Even over three years, the stock’s 11.58% gain pales in comparison to the Sensex’s robust 36.34% rise. Despite this, the five-year return of 232.06% indicates that the company has delivered substantial gains over a longer horizon, outperforming the benchmark’s 90.69% in that period.
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Technical Indicators and Sectoral Influence
From a technical standpoint, Indo Amines is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This widespread weakness across multiple timeframes suggests a bearish sentiment among traders and investors. The stock’s intraday low of ₹121.45 on 24 Nov underscores the downward momentum.
The broader chemicals sector, to which Indo Amines belongs, has also experienced a decline, falling by 2.07% on the same day. This sectoral weakness likely compounds the stock’s challenges, as investors may be cautious about the outlook for chemical companies amid prevailing market conditions.
Investor participation appears to be waning as well. Delivery volume on 21 Nov was recorded at 26,360 shares, representing a sharp 36.93% drop compared to the five-day average delivery volume. Reduced investor engagement often signals diminished confidence or uncertainty, which can exacerbate price declines.
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Liquidity and Trading Considerations
Despite the recent price weakness, Indo Amines remains sufficiently liquid for trading, with the ability to handle trade sizes of around ₹0.01 crore based on 2% of the five-day average traded value. This liquidity ensures that investors can enter or exit positions without excessive price impact, although the prevailing negative sentiment may continue to weigh on the stock’s price in the near term.
In summary, the decline in Indo Amines’ share price on 24 Nov is the result of a combination of factors: a sustained downtrend over multiple sessions, underperformance relative to the Sensex and sector peers, technical weakness below key moving averages, sector-wide pressures in chemicals, and reduced investor participation. These elements collectively contribute to the stock’s current bearish momentum, reflecting cautious investor sentiment amid challenging market conditions.
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