The Housing and Urban Development Corporation (HUDCO) shares tumbled 10%, hitting the lower circuit at ₹195.66 on February 3, 2025.
The stock opened at ₹214.00, slightly below its previous close of ₹217.40, but quickly declined due to intense selling pressure. With a massive 2.09 crore shares exchanged, amounting to ₹410 crore in value, the steep drop left investors searching for answers.
HUDCO’s trading session on February 3 was marked by extreme volatility. The stock, after opening at ₹214.00, briefly touched ₹214.20 before rapidly plummeting to the lower circuit limit of ₹195.66.
This 10% drop aligns with its broader downward trend over the past year, bringing its value 44.6% below its 52-week high of ₹353.70, recorded in April 2024. While the exact reason for the sharp decline remains unclear, analysts attribute the fall to profit booking, broader sectoral corrections, and concerns over potential reductions in government infrastructure spending.
Other players in the sector, such as NBCC and IRB Infrastructure, also recorded losses, though none as severe as HUDCO’s.
A market strategist based in Mumbai noted, “Investors are factoring in risks associated with project delays and liquidity constraints. HUDCO’s reliance on state government projects—often hindered by bureaucratic red tape—has intensified these concerns.”
Analysts believe that the upcoming Union Budget 2025–26, which is expected to allocate ₹1.2 lakh crore for urban infrastructure, could play a crucial role in determining HUDCO’s recovery prospects.
