Viji Finance Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Market Performance and Price Action

On 14 Jan 2026, Viji Finance Ltd’s equity shares closed at ₹2.89, marking a decline of ₹0.15 or 4.93% from the previous close. This drop triggered the lower circuit filter, capping further price falls for the day. The stock’s price band was set at ₹5, with both the high and low price recorded at ₹2.89, indicating no intra-day recovery from the circuit level. Total traded volume was 11,931 shares (0.11931 lakh), with a turnover of ₹0.003448 crore, reflecting subdued trading activity despite the sharp price movement.

The stock’s one-day return of -4.93% starkly contrasted with the sector’s modest decline of -0.27% and the Sensex’s near-flat movement of -0.02%, underscoring Viji Finance’s relative weakness. This underperformance extended a losing streak, with the stock falling for four consecutive sessions, accumulating an 18.13% loss over this period.

Investor Sentiment and Liquidity Dynamics

Investor participation has notably waned, with delivery volume on 13 Jan plunging by 98.02% to 23,060 shares compared to the five-day average. This sharp drop in delivery volume suggests a significant reduction in genuine investor interest, possibly due to mounting concerns over the company’s fundamentals or broader sectoral headwinds.

Despite the micro-cap’s limited market capitalisation of ₹44.00 crore, liquidity remains adequate for small trade sizes, with the stock’s traded value meeting 2% of its five-day average. However, the low turnover on the day of the circuit hit indicates that selling pressure was driven by a relatively small pool of sellers, exacerbating price volatility.

Technical Indicators and Moving Averages

Technically, Viji Finance’s share price remains above its 20-day, 50-day, and 200-day moving averages, signalling some underlying support at longer-term levels. However, the stock trades below its 5-day and 100-day moving averages, reflecting short-term weakness and a bearish momentum shift. This mixed technical picture may contribute to investor uncertainty, with short-term traders likely to remain cautious.

Fundamental and Sectoral Context

Viji Finance Ltd operates within the NBFC sector, a segment currently facing multiple challenges including tightening credit conditions, regulatory scrutiny, and rising non-performing assets. The company’s micro-cap status and modest market capitalisation of ₹44 crore place it at a disadvantage compared to larger peers, limiting its ability to absorb shocks and attract institutional interest.

The company’s Mojo Score stands at 21.0, with a Mojo Grade of Strong Sell as of 26 Nov 2025, an upgrade from the previous Sell rating. This downgrade reflects deteriorating fundamentals and heightened risk factors, signalling caution for investors. The Market Cap Grade of 4 further emphasises the stock’s micro-cap classification and associated liquidity constraints.

Supply-Demand Imbalance and Panic Selling

The lower circuit hit is indicative of an acute supply-demand imbalance, where sell orders overwhelm buy interest, forcing the exchange to halt further price declines temporarily. Such a scenario often arises from panic selling triggered by negative news flow, disappointing earnings, or broader market fears.

In Viji Finance’s case, the unfilled supply of shares at the lower circuit price suggests that sellers were unable to find buyers willing to transact even at the steep discount. This situation can exacerbate downward pressure in subsequent sessions if confidence is not restored.

Outlook and Investor Considerations

Given the stock’s recent performance and technical signals, investors should approach Viji Finance with caution. The strong sell rating and ongoing negative momentum imply that further downside risk remains. However, the presence of longer-term moving average support may offer some relief if the company can stabilise its fundamentals and improve investor sentiment.

Market participants should closely monitor trading volumes, price action around key support levels, and any corporate developments that could influence the stock’s trajectory. Diversification and comparison with better-rated NBFC peers may be prudent strategies in the current environment.

Summary

Viji Finance Ltd’s plunge to the lower circuit on 14 Jan 2026 highlights the mounting challenges faced by this micro-cap NBFC. Heavy selling pressure, a maximum daily loss of nearly 5%, and a sharp drop in investor participation underscore a fragile market sentiment. While technical indicators offer mixed signals, the company’s strong sell rating and limited liquidity suggest that investors should remain cautious and consider alternative opportunities within the sector.

As the NBFC sector continues to navigate regulatory and economic headwinds, stocks like Viji Finance may remain vulnerable to volatility and downside risk. Close monitoring of price trends, volume patterns, and fundamental updates will be essential for informed decision-making in the coming weeks.

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