The sharp fall came with elevated trading activity. About 50.66 lakh shares changed hands on the NSE, with turnover of roughly Rs 248.59 crore, even as there was no immediate company-specific trigger identified for the day’s decline. The sell-off knocked the company’s total market capitalisation down to Rs 5,304.04 crore.
Prolonged slide weighs on sentiment
Wednesday’s drop extended a losing streak that has now stretched to six consecutive trading sessions, during which the stock has shed nearly 23%. Over a longer horizon, the picture is even more sobering: Balu Forge shares are down 38% over the past one year and have fallen 32% in the last six months, signalling sustained pressure on investor confidence.From a technical standpoint, the stock is firmly in bearish territory. It is currently trading below all eight key simple moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day SMAs, pointing to weakness across short-, medium- and long-term charts.
Momentum indicators also remain negative. The Relative Strength Index stands at 36.4, with readings below 30 typically considered oversold and above 70 overbought. Meanwhile, the Moving Average Convergence Divergence is at -9.4 and remains below both the centre and signal lines, reinforcing a strong bearish signal.
Recent defence milestone fails to arrest fall
The sell-off comes despite a positive operational update last month. In December 2025, Balu Forge said it had begun operations of its fully indigenously developed empty shell production line at its greenfield manufacturing campus in Belgaum, Karnataka, a move described as a significant milestone for India’s defence manufacturing ecosystem.The production line, among the first 100% home-built systems of its kind in the country, has an annual capacity of 360,000 large-calibre ammunition shells. It is equipped with advanced forging and machining systems for defence-grade projectiles and is designed to strengthen the company’s ability to supply high-precision components for critical military applications.
The line will initially cater to 155 mm shells but has been designed to support other formats, including 120 mm, 105 mm and 81 mm. Powered by near 100% automation using FANUC Robotics, the forging line operates as a fully unmanned system with a cycle time of 55 seconds. The company designed the system in-house, with contributions from 18 machinery manufacturers, and said the project forms part of a broader strategy to scale its precision engineering portfolio at the Belgaum facility.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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