Shares of Aye Finance fell 2.82% to close at ₹167.05 on the BSE on Monday, marking a sharp reversal in sentiment for the micro-enterprise lender.
The decline, driven largely by profit booking, pushed the stock down nearly 4% for the month of July and ended a three-month winning streak that had seen the shares surge 82% between April and June.
The selling pressure emerged despite positive technical signals from major brokers.
Both JM Financial and IIFL Capital issued buy recommendations for the stock following the company's strong first-quarter results, yet traders appeared eager to lock in gains after the parabolic run-up.
The move underscores the volatility inherent in small-cap financials that have experienced rapid re-rating.
This latest dip follows a similar correction earlier in the week.