Cholamandalam Investment & Finance Company Ltd Hits Intraday Low Amid Price Pressure

Feb 01 2026 03:17 PM IST
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Cholamandalam Investment & Finance Company Ltd experienced a notable decline today, touching an intraday low of Rs 1,581.1 as selling pressure intensified. The stock underperformed both its sector and the broader market, reflecting immediate challenges in market sentiment and technical positioning.
Cholamandalam Investment & Finance Company Ltd Hits Intraday Low Amid Price Pressure

Intraday Performance and Price Movement

On 1 Feb 2026, Cholamandalam Investment & Finance Company Ltd, a key player in the Non Banking Financial Company (NBFC) sector, saw its share price fall by 3.68% over the trading session. The stock reached a day low of Rs 1,581.1, marking a 3.09% drop from its previous close. This decline was sharper than the sector’s overall fall of 2.29%, and the stock underperformed the Sensex, which itself declined by 1.72% after a volatile session.

The stock’s intraday weakness was accompanied by a broader market reversal. The Sensex, which opened 119.19 points higher, reversed sharply to close at 80,856.98, down 1,531.99 points. Cholamandalam’s 3.76% loss on the day was nearly double the Sensex’s decline of 1.97%, highlighting the stock’s relative vulnerability amid the market downturn.

Technical Indicators and Moving Averages

From a technical standpoint, Cholamandalam Investment & Finance Company Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates sustained downward momentum and suggests that short-term and long-term technical support levels are under pressure.

The stock has also recorded consecutive losses over the past two days, with a cumulative decline of 3.94%. This recent trend contrasts with its longer-term performance, where it has delivered a 22.29% gain over the past year and an impressive 1,135.77% return over the last decade, significantly outperforming the Sensex’s respective 5.07% and 224.29% gains.

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Sector and Market Context

The NBFC sector, to which Cholamandalam belongs, also faced downward pressure, declining by 2.29% on the day. This sectoral weakness compounded the stock’s challenges, as investors appeared cautious amid broader market volatility. The Sensex’s failure to hold gains and subsequent sharp fall contributed to a risk-off sentiment, impacting financial stocks more acutely.

Despite the current weakness, Cholamandalam’s market capitalisation remains robust, supported by a Market Cap Grade of 1, indicating its status as a large-cap stock with significant market presence. The company’s Mojo Score stands at 71.0, reflecting a Buy grade as of 13 Jan 2026, upgraded from a previous Hold rating. This upgrade signals a positive medium-term outlook, although it has not shielded the stock from short-term price pressures.

Performance Comparison Over Various Timeframes

Examining the stock’s performance relative to the Sensex over multiple periods reveals a pattern of recent underperformance amid longer-term strength. Over the past week, Cholamandalam has declined 4.42%, compared to the Sensex’s 1.09% fall. The one-month and three-month returns show similar trends, with the stock down 7.76% and 8.34% respectively, while the Sensex fell 4.75% and 4.45% over the same periods.

Year-to-date, the stock has dropped 7.77%, slightly more than the Sensex’s 5.36% decline. These figures underscore the immediate pressures facing the stock, despite its strong cumulative gains over three, five, and ten years, where it has outpaced the benchmark by wide margins.

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Market Sentiment and Immediate Pressures

The sharp reversal in the Sensex after a positive start to the day has contributed to a cautious market mood, particularly affecting financial stocks such as Cholamandalam. The stock’s trading below all major moving averages signals a lack of immediate technical support, which may have triggered further selling by short-term traders.

Additionally, the stock’s underperformance relative to both its sector and the broader market suggests that investors are factoring in near-term uncertainties. While the company’s long-term fundamentals remain intact, the current market environment is weighing on price action, resulting in the intraday low observed today.

Overall, Cholamandalam Investment & Finance Company Ltd’s decline today reflects a combination of broader market weakness, sectoral pressure, and technical factors that have converged to create a challenging trading session for the stock.

Summary of Key Metrics

To summarise, Cholamandalam Investment & Finance Company Ltd’s key performance indicators as of 1 Feb 2026 are:

  • Intraday low: Rs 1,581.1 (-3.09%)
  • Day change: -3.68%
  • Consecutive two-day decline: -3.94%
  • Mojo Score: 71.0 (Buy grade, upgraded 13 Jan 2026)
  • Market Cap Grade: 1 (Large-cap)
  • Sector performance: -2.29%
  • Sensex performance: -1.72% on the day
  • Trading below all major moving averages (5, 20, 50, 100, 200 DMA)

These figures illustrate the immediate price pressure and technical challenges facing the stock amid a volatile market backdrop.

Conclusion

Cholamandalam Investment & Finance Company Ltd’s intraday low and overall decline today are indicative of prevailing market headwinds and sectoral softness. The stock’s technical positioning below key moving averages and its relative underperformance compared to the Sensex and NBFC sector highlight the pressures it faces in the short term. While the company’s long-term track record remains strong, the current trading session reflects a cautious market environment impacting price momentum.

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