Key Events This Week
Jan 19: Stock opens at Rs.756.25, down 2.99%
Jan 20: Downgrade to Sell rating announced
Jan 21: New 52-week low of Rs.705.25 reached amid technical weakness
Jan 22: Minor recovery to Rs.727.70 (+2.00%)
Jan 23: Week closes at Rs.719.95 (-1.06%)
Monday, 19 January 2026: Weak Start Amid Market Decline
Finolex Cables began the week on a weak note, closing at Rs.756.25, down 2.99% from the previous Friday’s close of Rs.779.55. This decline was sharper than the Sensex’s 0.49% fall to 36,650.97, signalling early selling pressure on the stock. The volume was relatively low at 7,976 shares, indicating cautious trading as investors digested broader market concerns.
Tuesday, 20 January 2026: Downgrade to Sell Amplifies Pressure
The stock fell further to Rs.730.45, a 3.41% drop, on significantly higher volume of 23,261 shares. This day coincided with MarketsMOJO’s downgrade of Finolex Cables from a 'Hold' to a 'Sell' rating, citing deteriorating technical indicators and flat financial performance. The downgrade highlighted concerns over the company’s stagnant half-year results, declining ROCE of 15.10%, and reduced cash reserves of Rs.54.94 crores. The Sensex also declined sharply by 1.82% to 35,984.65, but Finolex’s steeper fall reflected the impact of the negative rating and technical weakness.
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Wednesday, 21 January 2026: New 52-Week Low Amid Bearish Technicals
On 21 January, Finolex Cables hit a new 52-week low intraday of Rs.705.25, closing at Rs.713.45, down 2.33%. This marked the third consecutive day of decline, with the stock losing 9.14% over this period. The broader cables sector declined by 2.84% on the day, reflecting sectoral headwinds. Technical indicators deteriorated sharply, with daily moving averages turning bearish and monthly MACD signalling downward momentum. Despite a weekly MACD and KST showing mild bullishness, the monthly indicators and Bollinger Bands pointed to increased volatility and selling pressure. The stock’s price remained well below key moving averages, underscoring weakening momentum. The Sensex also declined by 0.47% to 35,815.26, but Finolex’s sharper fall highlighted its relative weakness.
Thursday, 22 January 2026: Short-Lived Recovery on Lower Volume
Finolex Cables saw a modest rebound, closing at Rs.727.70, up 2.00% on a volume of 7,343 shares. This recovery coincided with a 0.76% gain in the Sensex to 36,088.66, suggesting some relief in the broader market. However, technical indicators remained cautious, with the stock still trading below major moving averages and bearish monthly signals persisting. The bounce appeared short-lived and lacked conviction, as volume was subdued compared to earlier in the week.
Friday, 23 January 2026: Week Ends on a Negative Note
The week concluded with Finolex Cables closing at Rs.719.95, down 1.06% on low volume of 7,041 shares. The Sensex fell 1.33% to 35,609.90, continuing the broader market weakness. The stock’s weekly decline of 7.65% outpaced the Sensex’s 3.31% fall, reflecting persistent selling pressure. Technical momentum remained bearish, with no clear signs of reversal. Institutional investors, holding 25.19% of shares, appeared cautious amid the downgrade and flat financial results. The stock’s valuation at a Price to Book Value of 2 remains fair but does not offset concerns over flat ROCE and declining profits.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-19 | Rs.756.25 | -2.99% | 36,650.97 | -0.49% |
| 2026-01-20 | Rs.730.45 | -3.41% | 35,984.65 | -1.82% |
| 2026-01-21 | Rs.713.45 | -2.33% | 35,815.26 | -0.47% |
| 2026-01-22 | Rs.727.70 | +2.00% | 36,088.66 | +0.76% |
| 2026-01-23 | Rs.719.95 | -1.06% | 35,609.90 | -1.33% |
Key Takeaways from the Week
1. Downgrade to Sell Rating: The MarketsMOJO downgrade on 20 January was a pivotal event, reflecting deteriorating fundamentals and technicals. The Mojo Score of 44.0 and Sell rating underscore caution amid flat financials and weakening momentum.
2. Technical Weakness and 52-Week Low: The stock’s fall to Rs.705.25 on 21 January marked a significant technical low, with bearish signals from MACD, Bollinger Bands, and moving averages dominating the chart. This technical deterioration has weighed heavily on investor sentiment.
3. Underperformance Despite Sector and Market Volatility: While the Sensex declined 3.31% and the cables sector faced headwinds, Finolex Cables’ 7.65% weekly fall indicates relative weakness. The stock’s valuation remains fair, but flat ROCE and declining cash reserves raise concerns about near-term growth prospects.
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Conclusion
Finolex Cables Ltd. faced a difficult week characterised by a significant price decline, a downgrade to a Sell rating, and a clear shift to bearish technical momentum. Despite some long-term growth in net sales and operating profit, the recent flat financial performance, declining returns on capital, and technical weakness have overshadowed these positives. The stock’s underperformance relative to the Sensex and sector peers highlights the challenges ahead. Investors should note the cautious stance reflected in the downgrade and the technical indicators signalling continued downside risk in the near term. The week’s developments suggest that Finolex Cables will need to demonstrate improved financial results and regain technical strength before a sustained recovery can be expected.
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