Shriram Finance Ltd Sees Heavy Value Trading Amid Price Pressure

Robust Trading Activity and Market Capitalisation

Shriram Finance Ltd (NSE: SHRIRAMFIN) recorded a total traded volume of 81.02 lakh shares on 2 Feb 2026, translating into a massive traded value of approximately ₹7,757.34 crores. This level of activity places the stock among the most actively traded equities by value on the day, underscoring its significance within the NBFC sector and the broader market.

The company boasts a large-cap market capitalisation of ₹1,81,263 crores, reflecting its established position and investor confidence over the long term. Despite this, the stock underperformed the sector and benchmark indices on the day, with a closing last traded price (LTP) of ₹941, down 4.83% from the previous close of ₹997.60.

Price Movement and Technical Indicators

The stock opened at ₹990.20 and touched an intraday high of ₹992.70 before sliding to a low of ₹940.00, marking a sharp intraday decline of 5.87%. The weighted average price indicates that a significant portion of the volume was traded closer to the day’s low, signalling selling pressure throughout the session.

Technically, Shriram Finance’s share price remains above its 50-day, 100-day, and 200-day moving averages, suggesting a longer-term uptrend remains intact. However, the price is currently below the 5-day and 20-day moving averages, indicating short-term weakness and a possible correction phase. This divergence between short- and long-term moving averages often reflects a consolidation or profit-booking period.

Institutional Interest and Delivery Volumes

Investor participation has been rising, as evidenced by the delivery volume of 46.73 lakh shares on 30 Jan 2026, which represents a 17.08% increase compared to the five-day average delivery volume. This uptick in delivery volumes suggests that institutional investors and long-term holders are actively transacting, either accumulating or offloading positions amid the recent price volatility.

Liquidity remains strong, with the stock’s traded value comfortably supporting trade sizes up to ₹12.66 crores based on 2% of the five-day average traded value. Such liquidity is crucial for institutional players seeking to execute large orders without significant market impact.

Performance Relative to Sector and Benchmark

On 2 Feb 2026, Shriram Finance’s stock return was -4.77%, significantly underperforming the NBFC sector’s decline of -0.69% and contrasting with the Sensex’s modest gain of 0.48%. This divergence highlights sector-specific challenges or company-specific factors weighing on the stock.

Moreover, the stock has been on a consecutive three-day losing streak, cumulatively falling 7.81%. Such a trend may reflect profit-taking or concerns over near-term earnings or macroeconomic factors impacting NBFCs, such as interest rate movements or credit growth uncertainties.

Mojo Score Upgrade and Market Sentiment

MarketsMOJO’s proprietary Mojo Score for Shriram Finance currently stands at 72.0, categorised as a ‘Buy’ grade. This represents an upgrade from the previous ‘Hold’ rating as of 15 Dec 2025, signalling improved fundamentals or positive outlook factors recognised by the research team. The Market Cap Grade is 1, indicating the company’s large-cap status and associated stability.

The upgrade suggests that despite recent price weakness, the stock retains favourable attributes such as strong asset quality, consistent earnings growth, or strategic positioning within the NBFC sector. Investors may view the current dip as a potential entry point given the longer-term positive assessment.

Sector Context and Industry Dynamics

The NBFC sector has been navigating a complex environment characterised by tightening liquidity conditions, regulatory scrutiny, and evolving credit demand patterns. Shriram Finance, as a leading NBFC, is exposed to these dynamics but also benefits from a diversified loan book and established distribution networks.

Its ability to maintain high trading volumes and institutional interest amid sector headwinds reflects investor confidence in its resilience and growth prospects. However, the recent price softness underscores the need for cautious monitoring of macroeconomic indicators and company-specific developments.

Investor Takeaways and Outlook

For investors, Shriram Finance’s current trading profile presents a nuanced picture. The stock’s high liquidity and institutional participation offer ease of entry and exit, while the Mojo Score upgrade provides a positive fundamental backdrop. However, the recent price decline and underperformance relative to sector peers warrant a cautious approach in the short term.

Long-term investors may consider the dip as an opportunity to accumulate, given the company’s large-cap stature and favourable grading. Traders, meanwhile, should monitor technical signals closely, especially the stock’s behaviour around key moving averages and volume patterns, to gauge potential reversals or further corrections.

Overall, Shriram Finance remains a key bellwether within the NBFC space, with its trading activity and market metrics offering valuable insights into sector sentiment and investor behaviour.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →