New Delhi, Sept. 16 -- Shares of water distribution and recycling stocks faced heavy selling pressure during Wednesday's trading session. Concord Enviro Systems Limited, EMS Limited, Taylormade Renewables Limited, VA Tech Wabag Limited, Ion Exchange India Limited, etc stock fell as much as 5.6%.

The recent decline in stocks has come as the sector is getting caught in a second straight session of small-cap profit booking. Additional factors like government payments timeline under the Jal Jeevan Mission 2.0 transition, may also be weighing on the sector, according to experts.

"Water stocks are falling today, likely due to broader small-cap profit booking and continuing concerns over slower government payments during the JJM 2.0 transition...