Why is Sakthi Finance falling/rising?

Dec 04 2025 12:46 AM IST

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On 03-Dec, Sakthi Finance Ltd witnessed a notable decline in its share price, closing at ₹36.70, down ₹0.65 or 1.74% from the previous session. This drop reflects a continuation of a broader downward trend that has persisted over recent weeks and months, underscoring challenges faced by the stock relative to market benchmarks and investor participation.

Recent Price Movements and Market Comparison

The stock has been under pressure for the past week, registering a loss of 5.36%, significantly underperforming the Sensex, which declined by only 0.59% over the same period. The divergence is even more pronounced over the last month, with Sakthi Finance falling 15.57% while the Sensex gained 1.34%. Year-to-date figures reveal a stark contrast: the stock has plummeted 38.34%, whereas the Sensex has risen by 8.92%. This trend extends over the one-year horizon, where Sakthi Finance’s share price has dropped 37.37%, compared to a 5.27% gain in the benchmark index.

Despite these recent setbacks, the stock has delivered a cumulative gain of 162.14% over five years, outperforming the Sensex’s 90.68% rise in the same period. However, the shorter-term weakness is currently dominating investor sentiment.

Technical Indicators and Trading Activity

On 03-Dec, Sakthi Finance hit a new 52-week low of ₹36.51, signalling persistent bearish momentum. The stock has underperformed its sector by 0.68% on the day, further emphasising its relative weakness. Notably, the share price has declined for three consecutive sessions, accumulating a 3.67% loss during this period.

Technical analysis reveals that the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This widespread weakness across multiple timeframes suggests a lack of short- and medium-term buying interest, reinforcing the downtrend.

Investor participation has also waned considerably. Delivery volume on 02 Dec was recorded at 1,500 shares, representing a sharp 70.16% drop compared to the five-day average delivery volume. This decline in investor engagement indicates reduced conviction among shareholders and traders, which often exacerbates price declines.

Liquidity and Trading Considerations

Liquidity remains adequate for trading, with the stock’s average traded value supporting reasonable trade sizes. However, the recent fall in delivery volumes suggests that while the stock is liquid enough for transactions, fewer investors are willing to hold or accumulate shares at current levels.

Summary and Investor Implications

The decline in Sakthi Finance’s share price on 03-Dec is a reflection of sustained underperformance relative to the broader market and sector peers. The stock’s fall to a new 52-week low, combined with its position below all major moving averages, signals ongoing technical weakness. Additionally, the sharp drop in delivery volumes highlights diminishing investor interest, which may continue to weigh on the stock in the near term.

While the company has demonstrated strong long-term returns over five years, the recent trend suggests caution for investors. Those considering exposure to Sakthi Finance should closely monitor market developments and trading volumes, as well as broader sector dynamics, before making investment decisions.

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