Viji Finance Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Market Performance and Price Action

On 12 Jan 2026, Viji Finance Ltd’s equity shares (series EQ) witnessed a sharp decline, hitting the lower circuit price band of ₹3.20, down ₹0.16 from the previous close. This 4.76% drop represents the maximum daily loss allowed under current trading regulations, underscoring the severity of the sell-off. The stock’s high and low price for the day were both ₹3.20, indicating that it remained locked at the lower circuit throughout the session.

The total traded volume was modest at 0.05572 lakh shares, with a turnover of ₹0.00178304 crore, reflecting subdued liquidity amid the panic selling. Despite the limited volume, the unfilled supply of shares at the lower circuit suggests persistent selling interest that overwhelmed buying demand.

Sector and Benchmark Comparison

Viji Finance’s performance starkly contrasted with its sector and broader market peers. The NBFC sector recorded a marginal gain of 0.05% on the same day, while the Sensex declined by 0.47%. This underperformance by nearly 5.0 percentage points highlights the stock’s vulnerability relative to its industry and the overall market environment.

Moreover, the stock has been on a downward trajectory for two consecutive sessions, losing 9.35% cumulatively. This sustained weakness reflects growing investor apprehension and a possible reassessment of the company’s fundamentals.

Technical and Trading Metrics

Interestingly, despite the recent price decline, Viji Finance’s share price remains above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This technical nuance suggests that the current sell-off may be driven more by short-term sentiment and panic rather than a fundamental breakdown in trend.

However, investor participation has noticeably waned. Delivery volume on 9 Jan 2026 was 5.98 lakh shares but has since dropped by 50.38% against the 5-day average delivery volume, signalling reduced conviction among buyers and a potential liquidity squeeze in the stock.

Fundamental and Market Capitalisation Overview

Viji Finance Ltd operates within the NBFC sector, catering to financial services outside the traditional banking framework. The company is classified as a micro-cap with a market capitalisation of approximately ₹49.00 crore, placing it among smaller, more volatile stocks in the market.

Its current Mojo Score stands at 21.0, reflecting a Strong Sell rating, an upgrade in negative sentiment from the previous Sell grade assigned on 26 Nov 2025. This downgrade in outlook is indicative of deteriorating fundamentals or heightened risk factors identified by analysts.

Investor Sentiment and Risk Factors

The sharp decline and circuit hit are symptomatic of panic selling, often triggered by adverse news, earnings misses, or broader sectoral concerns. While specific catalysts for the sell-off have not been publicly disclosed, the persistent unfilled supply at the lower circuit suggests that sellers are eager to exit positions despite the price floor.

Such selling pressure can exacerbate volatility and deter new investors, especially in a micro-cap stock where liquidity constraints amplify price swings. The fall in delivery volumes further confirms a cautious stance among market participants, potentially awaiting clearer signals before re-engaging.

Trading Liquidity and Market Depth

Despite the recent turmoil, Viji Finance’s liquidity remains adequate for small trade sizes, with the stock’s traded value representing about 2% of its 5-day average traded value. This implies that trades up to ₹0.01 crore can be executed without significant market impact, although larger transactions may face slippage due to limited depth.

Investors should be mindful of this liquidity profile when considering entry or exit, as micro-cap stocks often experience sharp price movements on relatively low volumes.

Outlook and Investor Considerations

Given the current strong sell rating and the stock’s recent price action, investors should approach Viji Finance Ltd with caution. The lower circuit hit signals a critical juncture where market participants are reassessing risk exposure amid uncertain fundamentals.

While the stock remains technically above key moving averages, the prevailing negative sentiment and liquidity constraints suggest that further downside cannot be ruled out in the near term. Investors with existing holdings may consider risk mitigation strategies, while prospective buyers should await signs of stabilisation or fundamental improvement before committing capital.

In the broader context, micro-cap NBFCs like Viji Finance often face heightened regulatory, credit, and market risks, which can translate into volatile share price movements. Continuous monitoring of company disclosures, sector developments, and analyst updates is advisable for informed decision-making.

Summary

Viji Finance Ltd’s shares hitting the lower circuit on 12 Jan 2026 reflects intense selling pressure and investor unease. The stock’s 4.76% decline to ₹3.20, combined with falling delivery volumes and unfilled supply, underscores a challenging trading environment. With a Strong Sell Mojo Grade and micro-cap status, the company remains under scrutiny amid sectoral headwinds and market volatility.

Investors should weigh the risks carefully and consider alternative opportunities within the NBFC space or broader market to optimise portfolio outcomes.

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