Blue Cloud Softech Solutions shares fell sharply on the Bombay Stock Exchange, dropping as much as 9.42% to ₹16.51, despite the company announcing it has been empanelled by Bharat Sanchar Nigam Ltd (BSNL).

The stock opened at ₹20.10, well below its previous close of ₹21.03 on Thursday, signaling immediate selling pressure from investors who appear to be taking profits after a recent rally.

Just earlier in the week, Blue Cloud Softech shares hit a 20% upper circuit for the second consecutive trading session.

The empanelment places Blue Cloud Softech in BSNL’s Category III Captive Non-Public Network (CNP) vendor list.

While this designation is a necessary step for the small-cap IT firm to bid for and execute projects for the state-owned telecom operator, the market reaction suggests skepticism about the immediate revenue impact or a desire to lock in gains from the prior week’s surge.

This sell-off follows a period of strong buying interest for the stock.

Just earlier in the week, Blue Cloud Softech shares hit a 20% upper circuit for the second consecutive trading session.