Polycab India Ltd Gains 9.60%: 6 Key Factors Driving the Rally

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Polycab India Ltd delivered a strong weekly performance, gaining 9.60% from Rs.7,855.80 to Rs.8,610.15 between 23 and 27 February 2026, significantly outperforming the Sensex which declined 0.96% over the same period. The stock consistently hit new 52-week highs throughout the week, supported by robust fundamentals, rising open interest in derivatives, and sustained institutional confidence, underscoring its leadership in the cables and electricals sector.

Key Events This Week

23 Feb: New 52-week high (Rs.7,989)

24 Feb: New 52-week high (Rs.8,125)

25 Feb: Intraday high of Rs.8,383.85 with strong 3.1% surge

26 Feb: New 52-week high (Rs.8,478.45)

27 Feb: New 52-week high (Rs.8,566) and sharp open interest surge

Week Open
Rs.7,855.80
Week Close
Rs.8,610.15
+9.60%
Week High
Rs.8,566
vs Sensex
-0.96%

23 February 2026: New 52-Week High Signals Strong Momentum

Polycab India Ltd began the week on a positive note, hitting a new 52-week high of Rs.7,989 on 23 February 2026. The stock closed at Rs.7,972.20, up 1.48%, outperforming the Sensex’s 0.39% gain. This milestone reflected robust market momentum and investor confidence in the company’s dominant position within the cables and electricals sector. The stock traded above all key moving averages, signalling sustained bullishness. Institutional investors held a significant 25.95% stake, reinforcing confidence in the company’s fundamentals.

24 February 2026: Resilience Amid Market Weakness

On 24 February, Polycab India Ltd extended its gains, reaching a new 52-week high of Rs.8,125 and closing at Rs.8,118.40, a 1.83% increase. This outperformance was notable as the Sensex declined 0.78% on the day. The stock’s resilience amid broader market weakness highlighted its relative strength and technical support above key moving averages. The company’s strong financials, including a 20.31% average ROE and 45.66% PAT growth over six months, underpinned investor optimism.

25 February 2026: Intraday Surge and Open Interest Spike

Polycab India Ltd recorded a robust intraday high of Rs.8,383.85 on 25 February, surging 3.1% to close at Rs.8,350.55. This marked the fourth consecutive day of gains, delivering a cumulative return of 7.78%. The stock outperformed its sector by 2.13%, supported by strong technical positioning above all moving averages. Concurrently, open interest in derivatives surged 12.02%, with futures and options turnover reaching ₹68,261 lakhs, signalling heightened market participation and bullish positioning.

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26 February 2026: Continued Rally to Rs.8,478.45

Polycab India Ltd maintained its upward trajectory on 26 February, hitting a new 52-week high of Rs.8,478.45 and closing at Rs.8,504.00, up 1.84%. The stock’s rally was in line with sector gains and supported by strong fundamentals including a 32.18% ROCE and consistent quarterly profitability. The Sensex posted a modest 0.19% gain, underscoring Polycab’s relative strength. Institutional investors continued to back the stock, which held a dominant 39.80% share of the cables sector’s market capitalisation.

27 February 2026: New High and Sharp Open Interest Surge

On the final trading day of the week, Polycab India Ltd reached a fresh 52-week high of Rs.8,566, closing at Rs.8,610.15 with a 1.25% gain. Despite a broader market decline of 1.16% in the Sensex, the stock demonstrated resilience and leadership within its sector. Open interest in derivatives surged 19.8%, with a volume of 47,617 contracts traded and a combined derivatives turnover of ₹71,388 lakhs. This surge indicated strong bullish sentiment and fresh capital inflows. The stock’s technical strength remained intact, trading above all key moving averages and delivering an 11.23% return over six consecutive sessions.

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Date Stock Price Day Change Sensex Day Change
2026-02-23 Rs.7,972.20 +1.48% 36,817.86 +0.39%
2026-02-24 Rs.8,118.40 +1.83% 36,530.09 -0.78%
2026-02-25 Rs.8,350.55 +2.86% 36,679.75 +0.41%
2026-02-26 Rs.8,504.00 +1.84% 36,748.49 +0.19%
2026-02-27 Rs.8,610.15 +1.25% 36,322.56 -1.16%

Key Takeaways

Strong Price Momentum: Polycab India Ltd gained 9.60% over the week, consistently hitting new 52-week highs and outperforming the Sensex’s 0.96% decline.

Robust Fundamentals: The company’s average ROE of 20.31%, 45.66% PAT growth over six months, and 32.18% ROCE underpin its strong financial health.

Derivatives Market Activity: Sharp surges in open interest, up to 19.8% on 27 February, alongside high volumes and turnover, indicate fresh bullish positioning and investor confidence.

Institutional Support: Sustained institutional holdings at 25.95% reflect strong backing from analytical investors.

Technical Strength: Trading above all key moving averages throughout the week signals a healthy uptrend and technical resilience.

Premium Valuation: The stock trades at a high price-to-book ratio of 12.1 and PEG of 1.1, reflecting market expectations of continued growth and leadership.

Conclusion

Polycab India Ltd’s impressive 9.60% weekly gain amid a declining Sensex highlights its dominant position and strong market momentum within the cables and electricals sector. The stock’s consistent new highs, supported by solid financial metrics and a surge in derivatives open interest, demonstrate robust investor confidence and technical strength. Institutional backing and a premium valuation further underscore the market’s recognition of Polycab’s growth prospects. While broader market volatility persists, Polycab’s leadership and sustained momentum position it as a key player to watch in the sector.

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