BSE Smallcap Slips 2%; Tejas Networks, Kernex Sink on Earnings, Order Woes
Overview
The BSE Smallcap index plunged 2% amid global uncertainty and FII outflows, pushing 185 stocks to 52-week lows. Tejas Networks shares dropped 13% on a quarterly net loss and revenue plunge, while Kernex Microsystems fell 16% after its locomotive order deadline was rejected. The market faces heightened volatility.
Stocks Mentioned
The BSE Smallcap index tumbled 2.06 per cent on Monday, marking a significant decline amid prevailing global uncertainties, persistent foreign institutional investor (FII) outflows, and geopolitical concerns. The index's fall was the steepest among broader market segments, as investor appetite for riskier assets remained subdued.
In intra-day trade, as many as 185 stocks from the BSE Smallcap index touched their 52-week lows, signaling widespread weakness. This broad-based sell-off underscores the prevailing cautious sentiment in the market.
Tejas Networks Faces Earnings Shock
Tejas Networks, a part of the Tata Group, saw its share price plummet by 13 per cent. This sharp decline followed the company's announcement of a net loss of ₹197 crore for the quarter ended December 2025 (Q3FY26). In contrast, the company had posted a net profit of ₹166 crore during the same period last year. Its net revenue also experienced a drastic fall of 88 per cent, dropping to ₹307 crore from ₹2,645 crore in Q2FY25.
Kernex Microsystems Hit by Order Rejection
Kernex Microsystems India plunged 16 per cent to ₹1,011 per share. The downturn was triggered by Chittaranjan Locomotive Works (CLW) rejecting the company's request for an extension on its 2024 order for On-Board KAVACH equipment. The delay was primarily due to certification issues.
Kernex Microsystems stated that the non-consideration of the extension request would not financially impact the company or its future tender eligibility with Indian Railways. The company intends to use existing inventory for upcoming orders and future opportunities.
Broader Market Weakness
Other stocks like WPIL, Eimco Elecon (India), Quick Heal Technologies, Liberty Shoes, Signature Global (India), Jindal Photo, and Indo Farm Equipment also declined between 7 per cent and 9 per cent.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, commented on the market's weakness, citing India-specific and global geopolitical events, including developments around the US-India trade deal and international conflicts. He noted the spike in the India Volatility Index (India VIX), indicating expectations of significant volatility ahead.
