TCI Finance Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Sharp Decline and Lower Circuit Triggered

On 6 Feb 2026, TCI Finance Ltd’s stock price dropped by ₹0.80, a decline of 4.96%, reaching the lower circuit price band of ₹15.33. This marked the maximum permissible daily loss, triggering an automatic trading halt to curb further volatility. The stock’s high and low for the day were ₹15.98 and ₹15.33 respectively, indicating a persistent downward trend throughout the session.

The total traded volume was 26,295 shares (0.26295 lakh), with a turnover of ₹0.0409 crore, reflecting subdued liquidity despite the sharp price movement. The stock’s micro-cap market capitalisation stands at ₹21.00 crore, underscoring its vulnerability to sharp swings on relatively low volumes.

Sector and Market Comparison

TCI Finance Ltd’s 1-day return of -4.96% significantly underperformed the NBFC sector’s modest decline of -0.20% and the Sensex’s fall of -0.41% on the same day. This divergence highlights company-specific concerns driving the sell-off rather than broader sector or market weakness.

Despite the negative price action, the stock remains above its 200-day moving average, suggesting some long-term support. However, it is trading below its 5-day, 20-day, 50-day, and 100-day moving averages, signalling a short to medium-term bearish trend and increasing selling pressure.

Rising Investor Participation Amid Panic Selling

Investor participation surged notably on 5 Feb 2026, with delivery volume reaching 36,400 shares, a 265.41% increase compared to the 5-day average delivery volume. This spike in delivery volume indicates that more investors are holding shares rather than intraday trading, yet the overwhelming sentiment appears to be one of panic selling, as evidenced by the price decline and unfilled supply.

The stock’s liquidity, measured as 2% of the 5-day average traded value, is sufficient for a trade size of ₹0 crore, reflecting its micro-cap status and limited market depth. This thin liquidity exacerbates price volatility, making the stock susceptible to sharp moves on relatively small trades.

Mojo Score and Rating Update

MarketsMOJO assigns TCI Finance Ltd a Mojo Score of 33.0, categorising it with a Sell grade as of 30 Dec 2025. This represents a downgrade from its previous Strong Sell rating, indicating a slight improvement in outlook but still reflecting significant concerns about the company’s fundamentals and market performance.

The company’s market cap grade is 4, consistent with its micro-cap status, which typically entails higher risk and volatility. The downgrade and low Mojo Score suggest that analysts remain cautious about the stock’s near-term prospects, especially given the recent price weakness and liquidity constraints.

Underlying Factors Behind the Sell-Off

The heavy selling pressure on TCI Finance Ltd appears to be driven by a combination of factors including weak investor confidence, limited liquidity, and a lack of positive catalysts. The unfilled supply at lower price levels indicates that sellers are eager to exit positions, while buyers remain hesitant to step in, creating a downward spiral in price.

Additionally, the stock’s underperformance relative to its sector and the broader market suggests company-specific issues, possibly related to financial performance, asset quality concerns, or regulatory challenges typical in the NBFC space. Investors are likely reacting to these risks by offloading shares aggressively.

Technical Analysis and Moving Averages

From a technical perspective, TCI Finance Ltd’s position above the 200-day moving average provides a marginal long-term support level near ₹15. However, the stock’s failure to sustain levels above its shorter-term moving averages (5-day, 20-day, 50-day, and 100-day) signals persistent bearish momentum. This technical setup often precedes further downside unless there is a significant reversal in market sentiment or fundamental improvement.

Traders should monitor volume patterns closely, as rising delivery volumes coupled with falling prices typically indicate strong conviction among sellers. Until the stock breaks above its short-term moving averages with sustained volume, the risk of continued declines remains elevated.

Investor Implications and Outlook

For investors currently holding TCI Finance Ltd, the recent plunge to the lower circuit limit is a clear warning sign. The stock’s micro-cap status, combined with thin liquidity and deteriorating technical indicators, suggests elevated risk and potential for further downside.

Given the Sell rating and low Mojo Score, cautious investors may consider reducing exposure or exploring alternative NBFC stocks with stronger fundamentals and better liquidity profiles. The ongoing panic selling and unfilled supply indicate that a recovery may not be imminent without positive news or a broader market rally.

Long-term investors should closely monitor quarterly financial results, asset quality metrics, and regulatory developments affecting the NBFC sector to reassess the stock’s prospects. Meanwhile, traders might look for technical support levels near ₹15 or signs of volume contraction before considering re-entry.

Conclusion

TCI Finance Ltd’s sharp fall to the lower circuit price limit on 6 Feb 2026 underscores the challenges faced by micro-cap NBFC stocks in volatile market conditions. Heavy selling pressure, rising delivery volumes, and unfilled supply have combined to create a bearish environment, reflected in the stock’s underperformance relative to its sector and the broader market.

With a downgraded Mojo Grade of Sell and a modest Mojo Score of 33.0, the company remains under scrutiny from analysts and investors alike. Until there is a clear turnaround in fundamentals or market sentiment, the stock is likely to remain under pressure, warranting caution for current and prospective shareholders.

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