Muthoot Finance Ltd Hits Intraday Low Amid Price Pressure on 1 Feb 2026

Intraday Price Movement and Market Context

On 1 Feb 2026, Muthoot Finance Ltd opened sharply lower, down 2.06% from its prior close, signalling early bearish sentiment. The stock continued to weaken throughout the session, ultimately hitting an intraday low of Rs 3,540.1, representing a 7.52% drop. This intraday low was the lowest level seen since the start of the trading day, underscoring persistent selling pressure.

In comparison, the Sensex opened 119.19 points higher and traded positively, up 0.17% at 82,410.22 by mid-session. The benchmark index remains 4.55% below its 52-week high of 86,159.02, with mega-cap stocks leading the gains. Despite this broader market strength, Muthoot Finance’s shares lagged considerably, underperforming the Sensex by approximately 6.16 percentage points on the day.

Short-Term Performance Trends

The stock’s decline on 1 Feb 2026 extends a recent downtrend, marking the second consecutive day of losses. Over these two sessions, Muthoot Finance has fallen by 12.09%, indicating a notable short-term correction. The one-day performance of -5.99% contrasts sharply with the Sensex’s 0.19% gain, while the one-week return of -5.35% also trails the Sensex’s 1.09% advance.

Over the past month, the stock has declined 5.31%, again underperforming the Sensex’s modest 2.66% loss. However, longer-term returns remain robust, with a 63.20% gain over the past year and an impressive 251.67% increase over three years, significantly outpacing the Sensex’s respective 7.38% and 38.53% returns.

Technical Positioning and Moving Averages

From a technical perspective, Muthoot Finance’s current price sits above its 100-day and 200-day moving averages, suggesting that the longer-term trend remains intact. However, the stock is trading below its 5-day, 20-day, and 50-day moving averages, indicating short-term weakness and potential resistance at these levels. This mixed technical picture reflects the immediate price pressure amid a generally positive longer-term trend.

Sector and Industry Comparison

Muthoot Finance operates within the Non Banking Financial Company (NBFC) sector, which has seen mixed performance in recent sessions. The stock’s 6.19% decline on the day notably underperformed the NBFC sector by 5.18%, highlighting relative weakness within its peer group. This divergence suggests that company-specific factors or investor sentiment may be weighing more heavily on Muthoot Finance than on the broader sector.

Despite the current softness, the company maintains a strong fundamental standing, reflected in its MarketsMOJO Mojo Score of 90.0 and an upgraded Mojo Grade of Strong Buy as of 11 Aug 2025, up from Buy previously. The market capitalisation grade remains at 2, indicating a mid-cap status within the NBFC space.

Market Sentiment and Immediate Pressures

The intraday decline and price pressure on Muthoot Finance shares appear to be driven by short-term profit-taking and technical selling, as evidenced by the stock’s failure to hold above its short-term moving averages. The gap down opening further accentuated bearish momentum, with the stock unable to recover despite a broadly positive market backdrop.

Investor caution may also be influenced by the stock’s recent run-up, with year-to-date returns showing a slight decline of 5.64%, compared to the Sensex’s 3.28% loss. This suggests some profit-booking or repositioning within portfolios, contributing to the downward pressure.

Summary of Price Action Relative to Benchmarks

While Muthoot Finance’s share price has demonstrated strong long-term growth, the recent intraday low and short-term underperformance highlight a phase of consolidation and price correction. The stock’s 7.52% intraday drop contrasts with the Sensex’s modest gains, underscoring the divergence between the company’s share price movement and the broader market trend.

The stock’s relative weakness against the NBFC sector and the broader market suggests that immediate pressures are more pronounced for Muthoot Finance, despite its solid fundamentals and upgraded rating. The technical indicators and moving average positioning reinforce the notion of short-term caution among market participants.

Overall, the day’s trading session reflects a cautious market stance towards Muthoot Finance, with the stock’s intraday low serving as a key reference point for ongoing price dynamics.

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