Larsen & Toubro Ltd Declines 2.28%: 5 Key Factors Behind This Week’s Volatility

23 February 2026: New 52-Week and All-Time Highs Mark Strong Start

Larsen & Toubro Ltd began the week on a bullish note, reaching a new 52-week and all-time high of Rs.4,410 on 23 February. The stock gained 0.84% to close at Rs.4,417.15, outperforming the Sensex’s 0.39% rise. This surge was supported by robust institutional interest, with traded volumes exceeding 15 lakh shares and a traded value of ₹670.74 crores. The stock traded above all key moving averages, signalling strong technical momentum. The recent upgrade in Mojo Grade to Buy and a Mojo Score of 75.0 further bolstered investor confidence. Despite the positive price action, the stock slightly underperformed its sector on the day, indicating selective profit booking among peers.

24 February 2026: Intraday Volatility Amid New Highs and Profit-Taking

On 24 February, L&T touched a fresh 52-week and all-time high of Rs.4,440 early in the session but faced significant selling pressure, resulting in an intraday low of Rs.4,266.80. The stock closed down 3.59% at Rs.4,258.50, underperforming both the Sensex, which fell 0.78%, and the construction sector. This sharp intraday reversal reflected short-term profit-taking following the prior day’s gains. Despite the decline, the stock remained above its 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained longer-term strength. Trading volumes remained high, with over 11.9 lakh shares exchanged, and a traded value of approximately ₹525.61 crores, underscoring continued investor interest amid mixed market sentiment.

25 February 2026: Recovery and Outperformance Amid Upgraded Outlook

The stock rebounded on 25 February, gaining 0.97% to close at Rs.4,299.70, outperforming the Sensex’s 0.41% rise and the construction sector. Trading volumes moderated to 4.78 lakh shares, with a traded value of ₹205.21 crores. The Mojo Grade upgrade to Buy and a Mojo Score of 75.0 continued to support positive sentiment. Delivery volumes surged by 179.5% compared to the five-day average, signalling strong conviction among long-term investors. The stock traded just 3.17% below its 52-week high, maintaining a technical position above key moving averages, though slightly below the 5-day average, indicating short-term consolidation.

26 February 2026: High-Value Trading Amid Slight Price Dip

On 26 February, Larsen & Toubro saw continued high-value trading with over 12.8 lakh shares exchanged and a turnover exceeding ₹552.6 crores. Despite this liquidity, the stock edged down 0.32% to Rs.4,285.90, underperforming the Sensex’s 0.19% gain and the sector’s positive return. Delivery volumes declined slightly by 1.75% relative to the five-day average, suggesting some short-term profit booking. The stock remained above its 20-day, 50-day, 100-day, and 200-day moving averages, maintaining a medium- to long-term bullish trend. The Mojo Grade upgrade and a Mojo Score of 75.0 continue to reflect improved fundamentals and positive market sentiment.

27 February 2026: Narrow Range Consolidation with Sustained Interest

The week closed with Larsen & Toubro trading in a narrow range on 27 February, closing at Rs.4,280.55, down 0.12% on the day. The stock remained approximately 3.77% below its 52-week high, with a tight intraday range of Rs.41.1. Trading volumes were robust at nearly 8 lakh shares, with a traded value of ₹341.90 crores. Delivery volumes declined sharply by 45.19% compared to the five-day average, indicating reduced long-term investor participation or a shift towards intraday trading. The stock traded above its 20-day, 50-day, 100-day, and 200-day moving averages but below the 5-day average, suggesting short-term selling pressure amid an overall bullish medium-term trend. The Mojo Grade upgrade to Buy and a Mojo Score of 75.0 continue to underpin the stock’s fundamental strength.

Key Takeaways

Positive Signals: Larsen & Toubro demonstrated strong institutional interest throughout the week, with multiple sessions ranking among the most actively traded stocks by value. The Mojo Grade upgrade to Buy and a Mojo Score of 75.0 reflect improved fundamentals and market confidence. The stock maintained a position above key moving averages, signalling sustained medium- to long-term bullish momentum. Delivery volumes surged notably on 25 February, indicating growing conviction among long-term investors.

Cautionary Signals: Despite early-week highs at Rs.4,440, the stock faced significant intraday volatility and profit-taking, particularly on 24 February, resulting in a 3.59% daily decline. Delivery volumes declined sharply on the final trading day, suggesting some short-term investor caution or rotation. The stock closed the week down 2.28%, underperforming the Sensex’s 0.96% fall, highlighting near-term consolidation risks amid broader market volatility.

Conclusion

Larsen & Toubro Ltd’s week was characterised by a strong start with record highs, followed by profit-taking and consolidation amid mixed market conditions. The stock’s ability to attract high-value trading and institutional participation underscores its status as a large-cap leader in the construction sector. While short-term price pressures and delivery volume fluctuations suggest some caution, the company’s robust fundamentals, upgraded Mojo Grade, and technical positioning above key moving averages provide a solid foundation for medium- to long-term investors. Market participants should monitor price action around the 5-day moving average and delivery volume trends for indications of renewed momentum or deeper consolidation.

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