Midday Meltdown: Nifty Crumbles, Stocks Reel on Earnings & Deal Woes
Overview
Indian equities faced a downturn midday on January 12, with the Nifty 50 dipping below 26,000 and the BSE Sensex near 82,990. While broader weakness prevailed, individual stocks like Tejas Networks plunged on weak results, IREDA surged on strong profit, and Manappuram Finance rebounded after refuting deal delay rumors. Ashok Leyland and Lemon Tree Hotels also saw significant moves.
Stocks Mentioned
The mood on Dalal Street soured significantly by midday on January 12, as the Nifty 50 struggled below the 26,000 mark and the BSE Sensex approached 82,990 levels. This broad-based pressure saw individual stocks navigate sharp, often uncomfortable, movements driven by earnings reports, corporate clarifications, and strategic actions.
Stocks Under Pressure
Tejas Networks, a Tata Group-backed telecom equipment maker, faced considerable selling pressure, declining nearly 13% to around ₹364. The company reported a consolidated loss of ₹196.55 crore for the December quarter, its second consecutive quarterly deficit. This downturn was attributed to significantly lower sales and the deferral of a crucial BSNL purchase order. Revenue plummeted by approximately 88% year-on-year to ₹306.79 crore, a stark contrast to the over ₹2,600 crore reported in the same quarter last year. The company had posted a profit of ₹165.67 crore a year prior.
Companies Reporting Positive Moves
Indian Renewable Energy Development Agency (IREDA) stood out, jumping sharply after posting robust December quarter figures. Investors reacted positively to a 38% year-on-year increase in net profit to ₹584.91 crore, bolstered by higher disbursements and improved operational efficiency. Revenue from operations grew 25% to ₹2,130 crore, with asset quality showing improvement as gross NPAs fell to 3.75% and net NPAs to 1.68% in Q3FY26.
Manappuram Finance experienced a strong rebound, climbing about 5% to around ₹299 on the BSE amidst heavy trading volumes. This recovery followed the company's strong denial of media reports suggesting delays in its proposed transaction with Bain Capital due to regulatory issues. Management clarified that Reserve Bank of India approvals for subsidiary management changes had been secured, with only final transaction approval pending. The stock had previously fallen nearly 8% on initial reports.
Ashok Leyland bucked the overall market weakness, with shares rising 2-3% to near ₹189-191 on substantial volumes. The commercial vehicle manufacturer had recently achieved a record high.
Lemon Tree Hotels also saw gains, moving over 4% higher to around ₹156 early on. This rise followed the unveiling of a restructuring plan and an investment by Warburg Pincus in its subsidiary, Fleur Hotels. The company aims to separate its asset-light hotel management and brand business from its owned asset portfolio.
Mixed Sentiments
Indian Energy Exchange Ltd. (IEX) remained a focal point, trading approximately 2% higher as investors re-entered the stock after recent volatility. A 'Buy' rating and a ₹158 price target from JM Financial Institutional Securities, implying a 14% upside, provided some support. This optimism persists even as regulatory uncertainty lingers in the background, with recent tribunal hearings focusing on procedural aspects rather than market coupling merits.
Ashiana Housing, however, faced downward pressure, slipping close to 3% by midday and trading near ₹278. This decline followed the company's Q3 FY26 business update, causing it to underperform the weakening benchmark index.
