Cupid Share Price Crashes Nearly 20%: Profit Booking and Surveillance Curbs Trigger Sell-Off

Shares of Cupid Ltd came under intense selling pressure in early trade, plunging close to 20 per cent during the session and extending a sharp losing streak that has erased a significant portion of the stock’s recent gains. The decline marks one of the steepest single-day falls for the stock in recent months and has raised fresh questions about near-term sentiment.

On the Bombay Stock Exchange, Cupid shares dropped to an intraday low of around Rs 344, shedding over Rs 75 from the previous close. With this move, the stock has now declined nearly 30 per cent over the past five trading sessions, reversing a large part of the rally that had taken prices to record highs above Rs 520.

Profit Booking After a Sharp Rally

Market participants attribute the sharp fall primarily to aggressive profit booking following an extended rally. Cupid shares had seen a strong upward run over recent months, driven by optimism around growth prospects, capacity expansion plans and favourable business updates. The steep rise had pushed the stock into technically overbought territory, making it vulnerable to a correction.

Once selling pressure emerged, the decline gathered pace as short-term traders and momentum-driven investors rushed to lock in gains. The rapid unwinding of positions further accelerated the fall, turning what initially appeared to be a routine correction into a sharp sell-off.

Additional Surveillance Measures Add Pressure

The decline intensified after the stock was placed under the Additional Surveillance Measures (ASM) framework by stock exchanges. Under ASM, stocks are subjected to higher margin requirements and enhanced monitoring, a move aimed at curbing excessive speculation.

For small-cap stocks such as Cupid, inclusion under ASM often results in reduced liquidity and heightened volatility. Traders with leveraged positions are typically forced to exit once margins rise, leading to sharp price movements over a short period.

Heavy Volumes Signal Sentiment Shift

The sell-off was accompanied by a notable spike in trading volumes, suggesting broad-based participation rather than isolated selling. Analysts say the surge in volumes indicates a shift in short-term sentiment, with investors opting to book profits amid rising volatility in the broader small-cap space.

The decline has also snapped Cupid’s extended winning streak, reinforcing the view that the stock may enter a consolidation phase after its steep rally.

No Immediate Fundamental Trigger

Importantly, there has been no fresh negative company-specific announcement to directly explain the sharp fall. In recent disclosures, Cupid has reiterated its expansion plans, including the proposed establishment of an overseas manufacturing facility, and has maintained a positive outlook on demand conditions.

This suggests that the current correction is largely market-driven rather than a reflection of any immediate deterioration in business fundamentals.

What Investors Are Watching Next

Despite the sharp correction, Cupid shares remain well above levels seen earlier in the year, underlining the scale of the previous rally. However, analysts caution that near-term volatility is likely to persist as the stock digests recent gains.

Market participants will now closely monitor key technical support levels, upcoming earnings updates and any further regulatory or exchange-related actions. Until fresh triggers emerge, sentiment around the stock is expected to remain cautious, with sharp price swings possible in both directions.