Mphasis, Ramco Systems rally on heavy volumes

Ramco Systems has surged 12% to Rs 782, while Mphasis soared 10.5% to Rs 428 on the NSE in intra-day trade.

Shares of two information technology (IT) companies - Mphasis and Ramco Systems have rallied more than 10% each in intra-day trades on the back of heavy volumes, even though the frontline IT stocks are trading lower on growth concerns.

Ramco Systems has surged 12% to Rs 782 on the back of an over three-fold jump in trading volumes. The stock hit a 52-week high of Rs 799 on the NSE and has seen a combined around 100,000 shares changing hands on the counter till 1412 hours. On an average less than 25,000 shares were traded daily in past two weeks on the NSE and BSE.

Mphasis has soared 10.5% to Rs 428 on the NSE and has seen a combined 250,000 shares changing hands on the counter on both the exchanges.

Mphasis today announced that a meeting of the company's board of directors will be held on July 29, 2015 to approve the audited financial results of the company and group for the quarter ended June 30, 2015 (Q1).

Since May 25, the stock gained 15% after the company reported a better-than-expected net profit for the quarter ended March 2015. The CNX Nifty was down nearly 1% during the same period.

Prabhudas Lilladher has maintained an ‘accumulate’ rating on the stock, with a target price of Rs 480.

“We expect healthy growth in Direct Channel in FY15 with margin improvement, along with drag from HP channel. We expect volatility in Digital Risk revenue to restrict material upside and re-rating,” an analyst said in a report dated May 25, 2015.

Meanwhile, the CNX IT index, the largest loser among sectoral indices, was down nearly 1% or 102 points at 11,032 compared to 0.34% rise in the benchmark index.

HCL Technologies, Tata Consultancy Services (TCS), Wipro and Infosys were down 1%-2% each on the NSE.