Midcap IT stock Zensar Technologies jumped over 13% on NSE in Tuesday’s trading session amid strong buying interest in the IT stocks and stock market rally.
Zensar Technologies share price opened at ₹430 apiece today, as compared to previous close of ₹425.25 on Friday last week. The IT stock surged as much as 13%, hitting an intraday high of ₹479.90 on 15 September.
Meanwhile, benchmark indices Sensex and Nifty opened higher on Tuesday, supported by a strong buying interest in IT stocks. The 30-share BSE Sensex gained 233.66 points to trade at 75,022.37 in early deals, while the 50-share NSE Nifty rose 63.85 points to 23,462.30.
Why Zensar Technologies shares are rising today?
According to experts, IT stocks are witnessing a rise amid growing concerns over a slowdown in AI-driven growth across global markets. They believe that the AI slowdown could prove positive for Indian IT and technology stocks, which may continue to remain in focus and attract bullish interest until concerns over the slowdown ease.
Explaining the sharp rise in IT stocks, Amit Goel, Chief Global Strategist at PACE 360, said that IT and technology stocks had faced significant selling pressure during the global frenzy around AI stocks. However, with the AI-driven rally losing some momentum and growing concerns over a potential slowdown in the sector, these beaten-down stocks are once again drawing investor interest.
Goel added that IT stocks are currently available at relatively attractive valuations, having been among the biggest casualties during sharp sell-offs in the Indian equity market in recent years.
Meanwhile, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said that IT stocks are witnessing a “double bonanza” as the broader market is also showing a positive trend in early trade. With IT stocks currently in the oversold zone and several counters trading at attractive valuations, she expects bullish investors to favour the IT sector over other segments.
Zensar Technologies share price trend
Zensar Technologies share price has shown a mixed trend in the near term but remains under pressure over the longer term.
The stock gained 2.55% in the past one week, indicating some recovery in recent sessions. However, it has declined 5.86% over the past month. On a year-to-date basis, the IT stock has fallen 34.10%, while the shares are down 42.85% over the past one year.
The longer-term performance remains weak as well, with Zensar Technologies declining 12.45% over three years and 20.24% over five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
