Shares of HFCL, Sterlite Technologies, HEG, and MTAR Technologies locked in 5% lower circuits on Wednesday, September 16, 2026. The decline follows a massive rally earlier this year, prompting investors to book profits. The impact is being intensified by the Trade-to-Trade (T2T) settlement segment, which restricts intraday trading and limits liquidity during sell-offs.
Shares of HFCL, Sterlite Technologies, HEG, and MTAR Technologies experienced sharp selling pressure on Wednesday, September 16, 2026, with all four stocks hitting the 5% lower circuit limit. Buyers were largely absent from the counters, leaving the stocks locked at these levels for the remainder of the trading session.
This market correction follows a period of significant growth for these companies in 2026. Many of these stocks had delivered returns ranging from 200% to over 700% earlier this year, driven by optimism in the telecom, optical fiber, and advanced materials sectors. With valuations expanding rapidly, many investors are now choosing to lock in their gains, leading to a swift reversal in stock prices.
The decline is also being influenced by the regulatory structure of these shares. All four companies are currently listed under the Trade-to-Trade (T2T) segment on the exchanges. In this category, intraday trading—buying and selling on the same day—is not permitted, and all trades must result in the delivery of shares. While this segment is designed to curb excessive speculation, it reduces market liquidity. When sentiment turns negative, the lack of intraday traders to provide support can cause the stock price to drop rapidly and get locked at the lower circuit.
Company-specific developments, which previously fueled investor excitement, are now being viewed with a focus on execution. HFCL has been scaling its operations with a total planned capital investment of approximately ₹1,800 crore, aimed at boosting its capacity for optical fiber and connectivity products. The company also maintains a robust order book of over ₹21,000 crore, but the market is now shifting its focus from growth announcements to the actual financial impact of these projects.
Similarly, HEG has been in the spotlight following a major corporate restructuring. A composite scheme of arrangement became effective on September 1, 2026, splitting the company to create distinct entities for its legacy graphite electrode business and its newer focus areas like battery energy solutions and advanced materials. Such transitions often lead to volatility as the market re-evaluates the value and business strategy of the separated units.
For investors, the current price action reflects a period of valuation normalization after an extended run. The key monitorables moving forward will include the pace at which these companies convert their order books into revenue, the efficiency of their large capital spending programs, and how they navigate the post-restructuring phase in the case of HEG. Investors may also watch for any change in the exchange segment status of these stocks, as any move back to normal trading could improve liquidity.