Muthoot Finance Ltd Hits Intraday Low Amid Price Pressure on 13 Feb 2026

Intraday Price Movement and Volatility

The stock opened sharply lower with a gap down of 3.49%, signalling immediate selling pressure from the outset of trading. Throughout the day, Muthoot Finance Ltd displayed elevated volatility, with an intraday volatility measure of 72.1% based on the weighted average price. This level of price fluctuation is notably high for a large-cap NBFC stock, reflecting uncertainty among market participants.

After reaching the intraday low of Rs 3,662.1, the stock closed with a day change of -9.5%, substantially underperforming the Non Banking Financial Company (NBFC) sector, which itself declined by approximately 0.34% (derived from the underperformance figure of -9.16% relative to sector). This sharp decline contrasts with the broader market trend, where the Sensex fell by 0.90% to trade near 82,922 points, down 772.19 points from its previous close.

Technical Positioning and Moving Averages

From a technical standpoint, Muthoot Finance Ltd remains above its 100-day and 200-day moving averages, indicating that the longer-term trend is still intact. However, the stock is trading below its 5-day, 20-day, and 50-day moving averages, signalling short- to medium-term weakness. This positioning suggests that recent gains have been eroded and the stock is facing resistance at these shorter-term technical levels.

The reversal after five consecutive days of gains highlights a shift in momentum, with the stock unable to sustain its upward trajectory amid current market conditions.

Comparative Performance Analysis

Examining the stock’s recent performance relative to the Sensex reveals a mixed picture. Over the past day, Muthoot Finance Ltd declined by 9.93%, significantly underperforming the Sensex’s 0.90% drop. Over one week, the stock fell 1.05% compared to the Sensex’s 0.79% decline, and over one month, it dropped 6.66% versus the Sensex’s 0.84% fall.

Despite these short-term setbacks, the stock has demonstrated strong longer-term performance. Over three months, it gained 8.07% while the Sensex declined 1.84%. Over one year, Muthoot Finance Ltd surged 58.15%, far outpacing the Sensex’s 8.91% rise. The stock’s three-year and five-year returns stand at 266.08% and 178.71% respectively, compared to the Sensex’s 37.22% and 60.88%. Over a decade, the stock’s appreciation is an impressive 1,956.68%, dwarfing the Sensex’s 260.75% gain.

Year-to-date, however, the stock has declined 3.90%, slightly more than the Sensex’s 2.70% fall, indicating some recent pressure in line with broader market weakness.

Market Context and Sector Dynamics

The broader market environment on 13 Feb 2026 was characterised by a cautious tone. The Sensex opened lower at 82,902.73 points, down 0.92%, and remained under pressure throughout the session. The index is currently trading approximately 3.9% below its 52-week high of 86,159.02 points. Technical indicators show the Sensex trading below its 50-day moving average, although the 50-day average remains above the 200-day moving average, suggesting a mixed medium-term outlook.

Within this context, the NBFC sector, to which Muthoot Finance Ltd belongs, has also faced headwinds. The sector’s relative underperformance today, combined with the stock’s sharper decline, points to specific pressures on Muthoot Finance Ltd beyond general market weakness.

Mojo Score and Rating Update

Muthoot Finance Ltd holds a strong Mojo Score of 90.0, reflecting robust fundamentals and market standing. The company’s Mojo Grade was upgraded from Buy to Strong Buy on 11 Aug 2025, indicating improved confidence in its financial and operational metrics. Despite today’s price pressure, the stock maintains a Market Cap Grade of 1, underscoring its position as a large-cap entity within the NBFC sector.

The downgrade in short-term price performance contrasts with the positive rating outlook, highlighting a divergence between market sentiment and underlying company quality at this juncture.

Summary of Price Pressure Factors

The sharp intraday decline in Muthoot Finance Ltd’s share price can be attributed to a combination of factors. The stock’s gap down opening and high intraday volatility suggest active profit-taking or repositioning by traders following a sustained five-day rally. The broader market’s cautious stance, with the Sensex down nearly 1%, has also contributed to selling pressure.

Technical resistance at shorter-term moving averages has limited upside momentum, while the stock’s underperformance relative to its sector indicates company-specific pressures or profit-booking activity. The overall market environment remains sensitive, with investors reacting to macroeconomic cues and sectoral developments impacting NBFCs.

Conclusion

Muthoot Finance Ltd’s intraday low of Rs 3,662.1 on 13 Feb 2026 marks a notable reversal after a period of gains, reflecting immediate price pressure amid a volatile trading session. While the stock’s longer-term fundamentals and rating remain strong, the current market sentiment and technical factors have weighed on its performance. Investors monitoring the stock should note the divergence between short-term price action and the company’s robust Mojo Score and upgraded rating.

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