Intraday Performance and Price Movement
On 2 Feb 2026, Shriram Finance Ltd, a key player in the Non Banking Financial Company (NBFC) sector, recorded a day’s low of Rs 961.5, marking a 3.56% decrease from its previous close. The stock’s day change stood at -3.25%, underperforming its sector by 2.91%. This decline extended a three-day losing streak, during which the stock has fallen by 5.73% cumulatively. Despite trading above its 50-day, 100-day, and 200-day moving averages, the share price remained below its 5-day and 20-day moving averages, indicating short-term downward momentum.
Market Context and Sector Comparison
The broader market presented a contrasting picture. The Sensex opened lower by 167.26 points but recovered to close higher by 0.11%, trading at 80,810.40. Mega-cap stocks led this recovery, while the Sensex remained below its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a cautiously optimistic medium-term trend. In comparison, Shriram Finance’s 1-day performance of -3.17% lagged behind the Sensex’s modest gain of 0.16%, highlighting the stock’s relative weakness.
Short-Term and Medium-Term Trends
Over the past week, Shriram Finance declined by 3.80%, compared to the Sensex’s 0.84% fall. The one-month performance showed a 4.31% drop for the stock, slightly better than the Sensex’s 5.72% decline. However, the three-month trend remains robust, with the stock appreciating 28.91% against the Sensex’s 3.67% loss. This divergence suggests that while short-term pressures have weighed on the stock, its medium-term trajectory remains positive.
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Long-Term Performance and Market Capitalisation
Over longer horizons, Shriram Finance has demonstrated significant outperformance relative to the Sensex. The stock’s one-year return stands at 81.65%, vastly exceeding the Sensex’s 4.32%. Over three and five years, the stock has surged by 281.72% and 253.25% respectively, compared to the Sensex’s 34.91% and 62.37%. The ten-year performance is particularly striking, with a gain of 500.83% against the Sensex’s 229.49%. Despite today’s decline, the company maintains a Market Cap Grade of 1, reflecting its substantial market capitalisation and investor interest.
Mojo Score and Rating Update
Shriram Finance holds a Mojo Score of 72.0, categorised as a Buy grade, an upgrade from its previous Hold rating as of 15 Dec 2025. This rating reflects a positive assessment of the company’s fundamentals and market positioning, despite the recent price pressure. The Mojo Grade upgrade indicates improved confidence in the stock’s medium to long-term prospects, even as it navigates short-term volatility.
Immediate Price Pressure and Market Sentiment
The stock’s decline today appears influenced by a combination of profit booking and broader market rotation towards mega-cap stocks, which outperformed the mid and small-cap segments. The underperformance relative to the sector and Sensex suggests investors are exercising caution on NBFC stocks amid prevailing market uncertainties. The fact that the stock remains above its longer-term moving averages indicates that the current weakness may be a short-term correction rather than a fundamental shift.
Technical Indicators and Moving Averages
Technically, Shriram Finance’s share price trading below its 5-day and 20-day moving averages signals short-term bearishness. However, its position above the 50-day, 100-day, and 200-day moving averages provides a cushion of support, often interpreted as a sign of underlying strength. This mixed technical picture aligns with the observed price action, where the stock is experiencing intraday lows but remains within a broader uptrend.
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Summary of Price Action and Market Dynamics
In summary, Shriram Finance Ltd’s intraday low of Rs 961.5 and a 3.56% drop reflect immediate price pressure amid a market environment where broader indices showed resilience. The stock’s underperformance relative to the Sensex and its sector highlights short-term challenges, while its longer-term moving averages and upgraded Mojo Grade suggest a more stable medium-term outlook. The three-day consecutive decline and recent relative weakness underscore the need for close monitoring of price trends and market sentiment in the coming sessions.
Sector and Market Positioning
As a prominent NBFC, Shriram Finance operates in a sector sensitive to interest rate movements and credit demand cycles. The current market rotation favouring mega-cap stocks and the Sensex’s modest gains may have contributed to the stock’s relative weakness today. Nonetheless, the company’s strong historical performance and market capitalisation grade indicate its continued significance within the NBFC sector.
Conclusion
Today’s decline in Shriram Finance Ltd’s share price, culminating in an intraday low of Rs 961.5, is a reflection of short-term price pressures amid a cautiously optimistic market. While the stock has underperformed in the immediate term, its longer-term technical and fundamental indicators remain supportive. Investors and market participants will likely watch the stock’s movement relative to key moving averages and sector trends to gauge the sustainability of this price action.
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