Tamilnad Mercantile Bank Gains 9.91%: Four Key Milestones Drive the Rally

Jan 31 2026 11:01 AM IST
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Tamilnad Mercantile Bank Ltd delivered a strong weekly performance, rising 9.91% from Rs.553.95 to Rs.608.85 between 27 and 30 January 2026, significantly outperforming the Sensex’s 1.62% gain over the same period. The stock hit multiple new 52-week and all-time highs, reflecting robust financials and sustained investor confidence amid mixed broader market conditions.

Key Events This Week

27 Jan: Stock opens week at Rs.557.45, up 0.63%

28 Jan: Gains accelerate to Rs.571.65 (+2.55%)

29 Jan: New 52-week high at Rs.590 and all-time high at Rs.609.1

30 Jan: New 52-week and all-time high at Rs.621.5; week closes at Rs.608.85 (+0.36%)

Week Open
Rs.553.95
Week Close
Rs.608.85
+9.91%
Week High
Rs.621.5
vs Sensex
+8.29%

27 January 2026: Steady Start Amid Positive Market Sentiment

Tamilnad Mercantile Bank Ltd began the week at Rs.557.45, marking a 0.63% increase from the previous close of Rs.553.95. This modest gain was in line with the Sensex’s 0.50% rise to 35,786.84, signalling a broadly positive market environment. The stock’s volume was moderate at 14,402 shares, indicating steady investor interest as the broader market showed cautious optimism.

28 January 2026: Accelerated Gains with Market Rally

The stock advanced further to Rs.571.65, a 2.55% increase on the day, outpacing the Sensex’s 1.12% gain to 36,188.16. Despite a lower trading volume of 8,626 shares, Tamilnad Mercantile Bank Ltd demonstrated strong momentum, supported by positive technical indicators and growing investor confidence. The broader market’s rally provided a conducive backdrop for the stock’s upward movement.

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29 January 2026: Breakout to New 52-Week and All-Time Highs

On 29 January, Tamilnad Mercantile Bank Ltd surged to a new 52-week high of Rs.590 and an all-time high intraday price of Rs.609.1, closing at Rs.606.65 with a remarkable 6.12% daily gain. This rally was achieved despite an opening gap down of 2.01%, reflecting strong buying interest and resilience. The stock outperformed the Sensex, which recorded a marginal 0.22% gain, and the private sector banking sector by 5.6% on the day.

The volume spiked significantly to 47,960 shares, underscoring heightened investor activity. Tamilnad Mercantile Bank Ltd’s technical positioning remained robust, trading above all key moving averages (5-day through 200-day), signalling sustained upward momentum. This breakout was supported by the bank’s strong fundamentals, including a Capital Adequacy Ratio of 25.68%, zero gross and net NPAs, and a quarterly Net Interest Income of Rs.597.13 crore.

30 January 2026: New Highs Amid Mixed Market Signals

The stock continued its upward trajectory on 30 January, hitting a fresh 52-week and all-time high of Rs.621.5 during intraday trading. It closed at Rs.608.85, up 0.36% on the day, outperforming the Sensex which declined 0.22% to 36,185.03. The intraday price ranged from Rs.588 to Rs.621.5, reflecting some volatility but overall positive sentiment.

Volume moderated to 16,190 shares, yet the stock maintained its technical strength, trading above all major moving averages. The bank’s year-on-year total return now stands at an impressive 43.68%, far exceeding the Sensex’s 6.92% gain. The stock’s valuation remains attractive with a price-to-book ratio of 1 and a PEG ratio of 1, indicating balanced growth and valuation metrics.

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Date Stock Price Day Change Sensex Day Change
2026-01-27 Rs.557.45 +0.63% 35,786.84 +0.50%
2026-01-28 Rs.571.65 +2.55% 36,188.16 +1.12%
2026-01-29 Rs.606.65 +6.12% 36,266.59 +0.22%
2026-01-30 Rs.608.85 +0.36% 36,185.03 -0.22%

Key Takeaways

Strong Price Momentum: Tamilnad Mercantile Bank Ltd’s 9.91% weekly gain significantly outpaced the Sensex’s 1.62%, driven by multiple new highs and sustained buying interest.

Robust Financial Health: The bank’s high Capital Adequacy Ratio of 25.68%, zero gross and net NPAs, and strong Net Interest Income of Rs.597.13 crore underpin its solid fundamentals.

Technical Strength: Consistent trading above all key moving averages (5-day to 200-day) signals sustained positive momentum and investor confidence.

Limited Institutional Ownership: Despite strong performance, domestic mutual funds hold no stake, indicating a cautious stance from some institutional investors.

Conclusion

Tamilnad Mercantile Bank Ltd’s impressive 9.91% weekly gain capped by new 52-week and all-time highs reflects a confluence of strong fundamentals, technical strength, and positive market sentiment. The stock’s outperformance relative to the Sensex and sector peers highlights its resilience in a mixed market environment. While institutional participation remains limited, the bank’s robust capital position, excellent asset quality, and attractive valuation metrics provide a solid foundation for its continued momentum. Investors monitoring private sector banking stocks will find Tamilnad Mercantile Bank Ltd’s recent trajectory noteworthy for its combination of growth and stability.

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