Key Events This Week
16 Feb: Stock opens at Rs.655.50, up 1.02%
17 Feb: Strong 3.05% gain to Rs.675.50 on increased volume
18 Feb: Continued rally with 2.63% rise to Rs.693.25
19 Feb: Minor correction, stock dips 1.15% to Rs.685.25 amid Sensex decline
20 Feb: New 52-week and all-time highs reached, closing at Rs.689.60 (+0.63%)
16 February 2026: Week Begins with Steady Gains
The stock opened the week at Rs.655.50, marking a 1.02% increase from the previous Friday’s close of Rs.648.90. This rise was accompanied by a Sensex gain of 0.70%, closing at 36,787.89. The volume of 7,127 shares traded indicated moderate investor interest. The positive start set the tone for the week, with the stock outperforming the broader market by 0.32 percentage points.
17 February 2026: Strong Momentum Builds on Higher Volume
Tamilnad Mercantile Bank Ltd surged 3.05% to close at Rs.675.50, supported by increased trading volume of 9,381 shares. This gain outpaced the Sensex’s 0.32% rise to 36,904.38, signalling growing investor confidence. The stock’s outperformance was notable as it gained nearly ten times the Sensex’s daily percentage increase, reflecting positive sentiment around the bank’s fundamentals and outlook.
18 February 2026: Continued Rally Amid Market Optimism
The upward trend persisted with the stock climbing 2.63% to Rs.693.25 on a volume of 11,033 shares. The Sensex also advanced by 0.43% to 37,062.35, but Tamilnad Mercantile Bank Ltd’s gain was significantly stronger. This sustained rally was supported by the stock trading above all key moving averages, indicating technical strength and sustained buying interest.
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19 February 2026: Minor Correction Amid Broader Market Weakness
The stock experienced a slight pullback, declining 1.15% to Rs.685.25 despite a high volume of 11,074 shares. This dip coincided with a sharp Sensex fall of 1.45% to 36,523.88, reflecting broader market volatility. The correction was modest relative to the market drop, indicating relative resilience in Tamilnad Mercantile Bank Ltd’s shares.
20 February 2026: New 52-Week and All-Time Highs Mark a Milestone
On the final trading day of the week, the stock surged to a new 52-week high of Rs.716.25 intraday, closing at Rs.689.60 with a 0.63% gain. This performance outpaced the Sensex’s 0.41% rise to 36,674.32. The stock’s intraday high also represented an all-time peak, underscoring strong momentum. The day’s volume spiked to 19,112 shares, reflecting heightened investor interest.
The rally was underpinned by the bank’s robust financial metrics, including a Capital Adequacy Ratio of 24.31%, a low Gross NPA ratio of 0.91%, and a healthy credit-deposit ratio of 88.94%. Interest earned during the quarter reached Rs.1,469.41 crore, highlighting strong income generation. The stock’s valuation remains attractive with a Price to Book Value of 1.1 and a PEG ratio of 0.9, supporting the sustainability of the rally.
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Weekly Price Performance: Tamilnad Mercantile Bank Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.655.50 | +1.02% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.675.50 | +3.05% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.693.25 | +2.63% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.685.25 | -1.15% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.689.60 | +0.63% | 36,674.32 | +0.41% |
Key Takeaways from the Week
Positive Signals: Tamilnad Mercantile Bank Ltd demonstrated strong price momentum, outperforming the Sensex by 5.88% over the week. The stock’s new 52-week and all-time highs reflect robust investor confidence supported by solid financial fundamentals such as a high Capital Adequacy Ratio (24.31%) and low Gross NPA (0.91%). The bank’s credit-deposit ratio of 88.94% and record interest earned of Rs.1,469.41 crore further underpin its operational strength.
Cautionary Notes: Despite the strong rally, the stock experienced a minor correction on 19 February amid broader market weakness, signalling sensitivity to overall market volatility. Additionally, the negligible stake held by domestic mutual funds suggests limited institutional participation, which could impact liquidity and price stability in volatile conditions.
Conclusion
Tamilnad Mercantile Bank Ltd’s 6.27% weekly gain, driven by a new 52-week high and an all-time peak, highlights the stock’s strong upward trajectory within the private sector banking sector. Supported by sound financial metrics, consistent profit growth, and favourable valuation ratios, the stock has outperformed the broader market significantly. While minor corrections and limited institutional ownership warrant attention, the bank’s solid fundamentals and technical strength position it as a noteworthy performer in the current market environment.
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