Rajesh Exports Stock Plunges 5% After ED Searches
Shares of Rajesh Exports Limited continued their downward spiral on Wednesday, hitting the lower circuit for the second consecutive trading session. The stock declined by 5% to ₹345.60 on the BSE, following searches conducted by the Enforcement Directorate (ED) at multiple premises of the company on Tuesday.
The ED raids, part of a money laundering investigation, targeted the company's offices and residential premises of key officials in Mumbai, Delhi, and Bengaluru. According to ED officials, the searches were conducted under the Prevention of Money Laundering Act (PMLA) in connection with alleged irregularities in gold imports and exports.
Market Cap Eroded by Over ₹1,000 Crore
The sharp fall in the stock price has resulted in a loss of over ₹1,000 crore in market capitalization since the news broke. The company's market cap now stands at approximately ₹5,200 crore, down from ₹6,300 crore earlier this week.
Rajesh Exports, one of India's largest gold jewellery exporters, has seen its stock decline by nearly 30% from its 52-week high of ₹492.90. The stock has been under pressure amid regulatory scrutiny and weak global demand for gold.
ED Probe and Company Response
The ED investigation stems from a case registered against the company for alleged violations of foreign exchange management norms. Sources indicate that the agency is examining transactions related to gold imports and exports worth several hundred crores.
In a regulatory filing, Rajesh Exports stated: "We are cooperating with the authorities and providing all necessary documents. The company has always complied with all applicable laws and regulations." However, investors remain cautious as the probe deepens.
Impact on Gold Jewellery Sector
The development has also cast a shadow on the broader gold jewellery sector, with stocks of other exporters witnessing mild selling pressure. Analysts believe that regulatory actions could lead to tighter compliance norms for the industry.
"The ED action against a leading exporter like Rajesh Exports is a significant event. It underscores the government's focus on curbing money laundering in the bullion trade," said a senior market analyst at SMC Global Securities.
Technical Outlook and Support Levels
From a technical perspective, the stock has breached its 200-day moving average of ₹380, indicating bearish momentum. Immediate support is seen at ₹340, while resistance lies at ₹370. Traders are advised to avoid bottom-fishing until clarity emerges on the investigation outcome.
The stock has been on a downtrend since January 2026, when it hit its peak. The current sell-off has been exacerbated by the ED raids, triggering circuit filters on both exchanges.
