Midcap IT stocks: The week that was in 10 stocks: Midcap IT names fly high, Adani Group stocks tumble

NEW DELHI: Even as benchmark indices ended flat after a week of volatile moves, some stocks — especially from IT and auto sectors — were buzzing ahead of the June quarter earnings season.

Large and midcap IT companies will remain in focus next week as the Q1 FY22 result season commences in India. USA’s IT services companies registered exemplary earnings performance with upward revision in their outlook propelled by strong tailwinds. In a similar fashion, IT stocks in India have been witnessing a strong push over healthy earnings expectations.

“The domestic market will continue to track cues from the global markets in order to gain direction in movement. Reducing covid cases and progress in vaccination domestically will continue to pump optimism in the market. Services and Composite PMI data are the two major economic data awaiting release next week,” said Vinod Nair, Head of Research at Geojit Financial Services.

Here are a few stocks that buzzed the most during the week:

Happiest Minds Tech: The IT company that debuted in the secondary market last year surged on management’s optimistic FY22 sales growth outlook last week. It jumped 26.14 per cent to Rs 1,187.95.

Route Mobile: Shares of the telecom services provider surged 23.28 per cent last week to Rs 2,112.20, continuing its bull run. The stock has been rising in hopes that increasing digitisation will lead to massive earning growth for the company.

Midcap IT names: Shares of
Tata Elxsi, eClerx Services, and
Firstsource Solutions were among the biggest gainers ahead of the upcoming earning season, They added 17.51 per cent, 15.84 per cent, 11.71 per cent and 12.42 per cent, respectively.

and : Shares of the PSU banks climbed 12.50 per cent and 10.46 per cent after reports suggested these two banks have been approved by the government for privatisation.

Adani Group: Shares of the Group have been on a downtrend as reports say a number of institutional investors may exit the firms. Analysts have also turned bearish on these scrips.

declined 22.61 per cent to Rs 920.40 by the end of the week. Adani Transmission was down 19.66 per cent followed by Adani Green Energy that fell 13.08 per cent.

Vodafone Idea: Shares of the telecom company came under selling pressure with increasing cash crunch. Its auditor also raised questions on its future existence. The counter dropped 16.90 per cent to end at Rs 8.80.