Sterlite Technologies (STL) shares were locked in a 5% lower circuit at ₹827.60 on Friday, October 30, extending their losses to a third consecutive session. The stock has fallen around 9% in three sessions, despite reporting a sharp jump in second-quarter earnings and securing large orders linked to artificial intelligence (AI) infrastructure.
The recent decline followed a 14% rally over three sessions, suggesting that investors may be booking profits after the stock's strong run-up. However, the company's substantial gains over the past year, ambitious growth targets and elevated expectations have also kept the focus on its valuation and execution.
Profit booking is a key factor behind the recent decline. Sterlite Technologies has delivered a multibagger rally this year, driven by optimism around rising demand for optical fibre and connectivity products used in AI data centres, as well as large, multi-year hyperscaler orders.
The stock has gained 55% in three months, 179% in six months and 580% in one year, despite losing more than 9% over the past month. It touched a 52-week high of ₹1,054.45 on October 7, compared with its 52-week low of ₹84.65 in January 2026.
The sharp run-up has raised the possibility of investors booking profits following the latest earnings-driven rally. Volatility in global AI and semiconductor-linked technology stocks has also dampened momentum in infrastructure and connectivity companies.