TCI Finance Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Persistent Downtrend and Market Underperformance

TCI Finance Ltd has been on a steep downward trajectory, losing over 40.05% in returns during the last ten trading days. This sustained decline significantly outpaces the sector’s marginal 0.02% loss and contrasts with the Sensex’s modest 0.04% gain on the same day. The stock opened sharply lower by 4.98% at ₹21.96 and remained locked at this price throughout the session, triggering the maximum permissible daily loss limit or lower circuit.

The company’s shares have underperformed the NBFC sector by 4.85% today, reflecting a clear divergence from broader sectoral trends. Despite the stock price remaining above its 50-day, 100-day, and 200-day moving averages, it has slipped below the short-term 5-day and 20-day averages, signalling near-term weakness and bearish momentum.

Heavy Selling Pressure and Liquidity Concerns

Trading volumes have been notably subdued, with total traded volume on 23 Jan recorded at just 0.02359 lakh shares, translating to a turnover of ₹0.00518 crore. This low liquidity is compounded by a sharp 41.23% decline in delivery volumes compared to the five-day average, with only 1,390 shares delivered on 22 Jan. Such falling investor participation suggests a growing reluctance among buyers to absorb the available supply, exacerbating downward price pressure.

The stock’s micro-cap status, with a market capitalisation of approximately ₹29.00 crore, further limits its trading depth and makes it vulnerable to sharp price swings on relatively small volumes. The price band of ₹5 restricts intraday price movement, but the stock’s inability to recover from the lower circuit level highlights the intensity of panic selling and unfilled supply in the market.

Mojo Score and Analyst Ratings

According to MarketsMOJO’s latest assessment dated 30 Dec 2025, TCI Finance Ltd holds a Mojo Score of 40.0, categorised under a ‘Sell’ grade. This represents a slight improvement from its previous ‘Strong Sell’ rating, indicating some stabilisation but continued caution. The company’s market cap grade stands at 4, reflecting its micro-cap status and associated risks.

Analysts highlight the stock’s vulnerability due to its limited liquidity, persistent negative price momentum, and the absence of any significant positive catalysts in the near term. The downgrade from ‘Strong Sell’ to ‘Sell’ suggests that while the worst may be behind, investors should remain wary of further downside risks.

Technical and Fundamental Outlook

Technically, the stock’s failure to break above short-term moving averages and its locking at the lower circuit price band signals strong bearish sentiment. The absence of any intraday price recovery despite the lower circuit trigger points to unfilled supply and panic selling dominating the market.

Fundamentally, as an NBFC operating in a highly competitive and regulated environment, TCI Finance Ltd faces challenges related to credit quality, asset-liability management, and capital adequacy. The micro-cap nature of the company limits its ability to raise capital efficiently, which may weigh on growth prospects and investor confidence.

Investors should also note that the stock’s liquidity constraints make it susceptible to exaggerated price movements, and any recovery may require sustained positive news flow or sectoral tailwinds.

Investor Implications and Market Sentiment

The sharp decline and circuit lock highlight the precarious position of TCI Finance Ltd in the current market environment. Investors holding the stock should carefully reassess their exposure, considering the ongoing downtrend and limited liquidity. The persistent selling pressure and lack of buyer interest suggest that the stock may remain under pressure in the near term.

For prospective investors, the current price levels may appear attractive, but the risks associated with micro-cap NBFCs, including regulatory scrutiny and credit risks, warrant a cautious approach. Monitoring sectoral developments and company-specific updates will be crucial before making any investment decisions.

Market participants should also be mindful of the broader NBFC sector dynamics, which have shown relative stability compared to TCI Finance Ltd’s sharp underperformance. This divergence underscores the importance of stock-specific factors driving the recent sell-off.

Conclusion

TCI Finance Ltd’s plunge to the lower circuit price limit on 23 Jan 2026 reflects intense selling pressure amid weak investor participation and unfilled supply. The stock’s sustained losses over the past ten days, combined with its micro-cap status and liquidity constraints, have heightened downside risks. While the recent Mojo Grade upgrade from ‘Strong Sell’ to ‘Sell’ offers a marginally less negative outlook, caution remains paramount for investors given the prevailing market sentiment and technical indicators.

In the absence of fresh positive triggers or sectoral tailwinds, TCI Finance Ltd is likely to face continued volatility. Investors should weigh the risks carefully and consider alternative opportunities within the NBFC space and beyond.

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