Birlasoft spurts 16% in two days

Birlasoft rose 1.31% to Rs 173.50, extending gains for second straight session.

Shares of Birlasoft rallied 15.62% in two trading sessions from a recent closing low of Rs 150.05 on Monday, 17 August 2020.

Birlasoft on Tuesday (18 August) announced a global strategic cloud alliance with Microsoft to help its clients to accelerate their digital journey. "With this collaboration, Birlasoft is strategically positioned to support its enterprise clients with their cloud transformation needs, right from infrastructure to business applications", the IT firm said.

Birlasoft plans to scale its current Microsoft cloud business to $100 million. Building on the current collaboration, the company will focus on delivering end-to-end services on Microsoft Azure, Microsoft 365, and Microsoft Dynamics 365, to its clients. Together with Microsoft, it will create innovative industry solutions and enable customers in focus industries to adopt Microsoft cloud technologies and services.

Following the announcement, the stock spurted 14.13% on Tuesday. On the technical front, the stock's RSI (relative strength index) stood at 85.153. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day moving average (DMA) placed at 109.37 and its 200-day moving average (DMA) placed at 82.32.

The company's consolidated net profit dropped 18.4% to Rs 56.34 crore on 0.83% rise in net sales to Rs 914.63 crore in Q1 June 2020 over Q4 March 2020.

Birlasoft is a multi-shore business application global IT services provider with a presence in the United States, Europe, Asia-Pacific and India. It operates development centres in the United States, China, Poland and India.

Powered by Capital Market - Live News