Shares of Cupid Ltd. continued their sharp decline on Monday, January 5, extending losses from Friday’s steep sell-off. The stock was down nearly 18–19% in early trade, taking the two-session fall to around 40%, after it had ended Friday locked in a 20% lower circuit.
The sharp correction in Cupid has come alongside weakness in Tourism Finance Corporation of India (TFCI), whose shares also fell again on Monday after a similar lower-circuit move last week. While both stocks belong to different sectors, a common link between the two is investor Aditya Halwasiya.
Common shareholder link triggers caution
Aditya Halwasiya is classified as a promoter in Cupid, holding 32.58% as per the September quarter shareholding data. In Tourism Finance, he is a significant public shareholder with around 18% stake. The simultaneous sharp fall in both stocks has led to heightened market caution, particularly among retail investors.
On Friday, Tourism Finance also witnessed a large block deal, where about 1.5 crore shares, or 3.24% of the equity, changed hands at an average price of around Rs 56 per share, valued at roughly Rs 83 crore. Data available shows that Ekta Halwasiya bought around 3.7 lakh shares of Tourism Finance on the same day, following these block transactions.
Heavy selling pressure and profit booking
Cupid had been among the top-performing stocks in 2025, delivering gains of nearly 600% before the recent correction. Market participants point to aggressive profit booking, particularly after a prolonged rally, as one of the key reasons behind the sharp fall.
Additionally, Cupid is currently under Stage 1 of the Long Term Additional Surveillance Measures (ASM) framework, which can amplify volatility as traders turn cautious and liquidity tightens during sharp moves.
No official trigger yet
Importantly, Cupid has not made any fresh announcement or disclosure to the exchanges that explains the sudden decline. There has been no official confirmation from the company regarding any corporate action, governance issue, or adverse development.
However, the absence of clarity, combined with large trades, heavy volumes, and sharp unwinding across two sessions, has contributed to panic selling. The broader weakness seen in Tourism Finance has also added to negative sentiment around stocks linked through common large shareholders.
What investors are watching
Market participants are now closely tracking:
- Any clarification or statement from Cupid’s management
- Updated shareholding disclosures
- Further block or bulk deal activity
- Regulatory updates related to ASM monitoring
Until clearer information emerges, volatility in Cupid shares is expected to remain elevated.
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