Viji Finance Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Market Performance and Price Action

On 29 Jan 2026, Viji Finance Ltd’s equity shares witnessed a steep fall, hitting the lower circuit band of 5%, closing at ₹2.34 from the previous close of ₹2.46. The stock’s intraday high was ₹2.50, while the low matched the closing price at ₹2.34, indicating sustained downward momentum throughout the trading session. The total traded volume stood at 3.22 lakh shares, with a turnover of approximately ₹0.077 crore, underscoring significant investor activity despite the price decline.

This performance starkly contrasts with the broader market trends, where the Sensex gained 0.38% and the NBFC sector recorded a modest 0.17% rise. Viji Finance underperformed its sector by 3.75%, highlighting its relative weakness amid a generally positive market environment.

Technical Indicators and Moving Averages

Technically, Viji Finance is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a bearish trend. The stock has been on a downward trajectory for the past two consecutive days, cumulatively losing 5.2% in returns during this period. Such a pattern suggests sustained selling pressure and a lack of short-term buying interest.

Moreover, the delivery volume on 28 Jan 2026 was 2.95 lakh shares, which is 26.09% lower than the 5-day average delivery volume. This decline in delivery volume indicates falling investor participation, possibly due to growing uncertainty or lack of conviction among shareholders.

Liquidity and Market Capitalisation

Viji Finance Ltd is classified as a micro-cap company with a market capitalisation of ₹36 crore. Despite its small size, the stock remains sufficiently liquid for trading, with a turnover that supports trade sizes up to ₹0 crore based on 2% of the 5-day average traded value. However, the recent price action and volume trends suggest that liquidity might be under strain as sellers dominate the market.

Investor Sentiment and Panic Selling

The sharp decline and circuit hit reflect a wave of panic selling among investors. The stock’s Mojo Score currently stands at 29.0, with a Mojo Grade of Strong Sell, an upgrade in severity from the previous Sell rating assigned on 21 Jan 2026. This downgrade signals deteriorating fundamentals and heightened risk perception among market participants.

Such a rating shift often triggers further selling as investors rush to exit positions, fearing deeper losses. The unfilled supply of shares at lower price levels exacerbates the downward pressure, as buyers remain hesitant to step in amid uncertainty. This imbalance between supply and demand is a key driver behind the stock’s inability to recover intraday, culminating in the lower circuit lock.

Comparative Sector and Market Context

While the NBFC sector has shown resilience with a slight positive return, Viji Finance’s underperformance is notable. The company’s micro-cap status and limited market capitalisation make it more vulnerable to volatility and liquidity shocks compared to larger peers. Investors often prefer to allocate capital to more stable and liquid stocks within the sector, leaving smaller names like Viji Finance exposed during periods of market stress.

Additionally, the stock’s consistent trading below all major moving averages indicates a lack of technical support, which may deter short-term traders and momentum investors from entering positions. This technical weakness, combined with fundamental concerns reflected in the Mojo Grade, paints a challenging outlook for the stock in the near term.

Outlook and Investor Considerations

Given the current market dynamics, investors should exercise caution with Viji Finance Ltd. The strong sell rating and recent price action suggest that the stock may continue to face downward pressure in the short term. Prospective buyers should closely monitor volume trends and any changes in fundamental metrics before considering entry.

For existing shareholders, it may be prudent to reassess portfolio exposure to this micro-cap NBFC, especially in light of the deteriorating technical indicators and weak investor participation. Diversification into more stable and fundamentally sound NBFCs or other sectors could help mitigate risk.

Market participants should also watch for any corporate announcements or sectoral developments that could influence sentiment. However, until clear signs of recovery emerge, the stock’s outlook remains subdued.

Summary

Viji Finance Ltd’s plunge to the lower circuit limit on 29 Jan 2026 underscores significant selling pressure and a lack of buyer interest. The stock’s underperformance relative to its sector and the broader market, combined with a downgrade to a Strong Sell Mojo Grade, highlights growing concerns about its fundamentals and market positioning. Investors are advised to approach the stock with caution and consider alternative investment opportunities within the NBFC space.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →