Whalesbook
Tata Capital shares are trading near historic lows, reaching ₹299 on Thursday. The stock saw trading volumes of about 7 lakh shares on the NSE, with intraday movements between ₹304 and ₹298.70. This comes after the share price dropped below ₹298 on Wednesday, May 20. The financial services firm's value has decreased by nearly 10% this month, underperforming the BSE Sensex's 2% decline over the same period.
Debut and Decline Since IPO
Tata Capital, a key non-banking financial company within the Tata Group, went public in October 2025. The stock reached a peak of ₹367 in January 2026 but has since lost 18.4% of its value. Currently, shares are priced 8% below their initial public offering price of ₹326. The IPO itself received a muted response, only being subscribed twice the issue size.
Strong Quarterly Earnings
Despite the share price weakness, Tata Capital reported strong financial results for the fourth quarter of fiscal year 2026. Net profit grew 43% year-over-year to ₹1,502 crore. Revenue increased by 9% to ₹8,160 crore, with Net Interest Income (NII) jumping 28% to ₹3,127 crore. Assets Under Management (AUM) also grew 20% to ₹2.77 lakh crore. The company is scheduled to hold an Analyst/Institutional Investors Meeting on May 22, 2026, in Mumbai.
Technical Analysis and Support Levels
Om Mehra, a Technical Research Analyst at SAMCO Securities, noted that Tata Capital is approaching a key support zone between ₹298 and ₹300. This area combines a descending trendline and a horizontal support level. He observed that the stock has formed lower highs since its February 2026 peak near ₹365, with selling pressure limiting any recovery.
Technical indicators point to a bearish short-term outlook. The Relative Strength Index (RSI) is at 33, nearing oversold levels, while the Moving Average Convergence-Divergence (MACD) lines remain deeply negative and are widening. Mehra identified the ₹295-₹290 range as critical. Holding above this level could support a rebound, but a sustained close below ₹298 would signal a significant bearish trend. For the stock to improve meaningfully, it must reclaim the ₹308-₹310 range and move above its 20-day moving average, currently at ₹320.