Party in mid-cap IT stocks to continue: MindTree, Zensar gain of over 35%

The bigger investment argument for the mid-cap IT firms is the change in demand environment, which is reflected in deal pipelines, the higher share of digital revenues and size of the contracts

Mid-cap IT stocks have been in the limelight, gaining 20-40 per cent over the last month with a large chunk of the gains coming over the last couple of weeks driven by improving deal pipeline, growing digital business and rupee depreciation. While MindTree and Zensar Technologies posted gains of over 35 per cent, Mphasis, NIIT Tech and the L&T software twins gained upwards of 19 per cent. The broader markets were up 5 per cent during this period. The near-term trigger has been the strong March quarter numbers and the improving deal pipeline.

Consider MindTree: the company posted its best performance