Select information technology shares rally; Mphasis surges over 15%

Geometric, Infinite Computer, R S Software, Nucleus Software, Mindteck and Majesco are up 5-10% on the BSE.

Shares of select information technology (IT) service provider companies mainly mid-and-small sized have rallied on the bourses up to 19% on back of heavy volumes in otherwise weak market.

Mphasis, Geometric, Infinite Computer Solutions (India), R S Software, Nucleus Software Exports, Mindteck (India) and Majesco have rallied between 5-19% on the BSE. The S&P BSE Sensex was down 0.33% at 26,950 points at 11:28 am.

Mphasis, the largest gainer among IT pack, has surged 19% to Rs 534 on the BSE on back of an over four-fold jump in trading volumes. The stock currently trading at its fresh 52-week high and rallied 28% from Rs 418 on October 20, post September quarter results.

The company had posted better-than-expected profit and revenue for the July-September quarter with strong performances of its direct international business. The firm posted a net profit of Rs 185 crore in the quarter ending September 30, up 15.3% from same period last year. On a sequential basis, net profit was up by 18.2%. The company attributed the rise in profit to increasing revenue from its direct international business.

Management has revised H2FY16 (October-March) margin range from earlier 12?14% to 13?15%. This may provide some support to the earnings; however, revenue growth remains sluggish, said analyst at Prabhudas Lilladher.

At 11:28 am, the stock was up 18% at Rs 530 on the BSE. A combined 1.83 million shares changed hands on the counter on the BSE and NSE.

Among the other individual stocks, Mindteck has locked in upper circuit of 10% at Rs 136 on the BSE. Nucleus Software Exports (up 8% at Rs 249), Geometric (7% at Rs 142), Majesco (7% at Rs 372), R S Software (6% at Rs 135) and Infinite Computer Solutions (5% at Rs 198) are up more than 5% each.