Cupid Share Price, Tourism Finance Plunge on Jan 2

Cupid shares hit 20% lower circuit; Tourism Finance also plunges on January 2

Mumbai: Shares of Cupid Limited and Tourism Finance Corporation of India witnessed sharp sell-offs on January 2, with both stocks locking in a 20 per cent lower circuit during intraday trade. The sudden decline marked a sharp reversal after extended winning streaks that had driven prices to multi-year highs in recent weeks.

Market participants attributed the fall to aggressive profit-taking, as stretched valuations and thinning liquidity at the start of the calendar year triggered a swift unwinding of positions.

Long rally comes to an abrupt halt

Cupid shares, which had rallied strongly over the past few months, saw heavy selling pressure soon after markets opened. The stock hit the lower circuit early in the session, leaving investors unable to exit positions as volumes dried up at lower price levels.

Tourism Finance Corporation of India followed a similar trajectory, with its shares also slipping to the maximum permissible intraday loss. The correction came despite no immediate company-specific disclosures, suggesting the move was driven more by market dynamics than fresh fundamentals.

Profit-taking and sentiment shift weigh on stocks

Analysts said such sharp corrections are not uncommon after prolonged rallies, especially in mid- and small-cap stocks where momentum-driven trades can reverse quickly. With broader markets showing volatility and investors reassessing risk, stocks that had delivered outsized gains were among the first to see selling pressure.

The absence of buyers at lower levels amplified the decline, resulting in circuit limits being triggered before price discovery could stabilise.

Focus turns to fundamentals and disclosures

Following the sudden drop, investor focus has shifted back to company fundamentals, earnings visibility and balance-sheet strength. In periods of sharp price corrections, transparent financial reporting and consistent disclosures often play a key role in restoring confidence.

For listed companies, accurate tracking of revenues, expenses and cash flows becomes especially important when market sentiment turns cautious. Strong internal financial discipline - often supported by bookkeeping services in india - helps ensure that reported numbers withstand closer scrutiny during volatile phases.

Volatility likely to persist in near term

Market experts cautioned that volatility could remain elevated in the near term as investors recalibrate portfolios after year-end rallies. Stocks that saw rapid appreciation without corresponding changes in fundamentals may continue to face pressure until stability returns.

Both Cupid and Tourism Finance are expected to remain under close watch in the coming sessions, with traders looking for signs of base formation or renewed buying interest before reassessing positions.