Shares of HFCL and Sterlite Technologies gained up to 5% on Friday, snapping a two-session losing streak as global technology and AI-linked stocks rebounded sharply after a bruising selloff earlier this week that had fuelled concerns the artificial intelligence rally was running ahead of fundamentals.

Sterlite Tech shares gained 5% to their day’s high of Rs 600, while HFCL shares were locked in a 5% upper circuit. Both stocks had fallen 8% each over the previous two sessions.

Sentiment improved significantly across global markets, with South Korea’s KOSPI, the world’s best-performing stock market this year, surging more than 8% in a single session. In the U.S., the Nasdaq Composite rose 2.54% on Thursday as investors returned to beaten-down technology names.

Easing geopolitical tensions and a decline in oil prices, which slipped to a two-month low, added to the risk-on mood, boosting optimism across equity markets. The shift in sentiment followed comments from U.S. President Donald Trump, who said a peace deal with Iran could be reached as early as this weekend.

Can you buy Sterlite Tech, HFCL shares?

Even as India continues to lag markets such as South Korea and Taiwan in direct exposure to the AI and semiconductor cycle, a different AI-linked investment theme is gathering momentum at home, and Sterlite Tech and HFCL are direct beneficiaries.

Both companies are involved in the business of manufacturing optical fibre cables among other verticals. India’s data centre industry is entering a multi-year growth phase, driven by accelerating digitalisation, rising cloud adoption and growing artificial intelligence demand.

Sterlite Technologies has emerged as the biggest winner from the theme, soaring 488% in 2026. Yet analysts believe the rally may not be over. Hong Kong-based CLSA expects the stock to climb another 14.5% from current levels following the company’s $1 billion order win from a US hyperscaler.

With a target of Rs 655, the brokerage says order significantly strengthens Sterlite’s positioning in AI data centres while improving medium-term growth visibility. CLSA expects the deal to reinforce the company’s competitiveness in global markets and is now modelling a 49% EBITDA CAGR between FY26 and FY29 while maintaining an “Outperform” rating on the stock. HFCL has also been among the standout performers, gaining 170% in 2026. The March quarter marked a sharp turnaround for the company. Revenue nearly doubled year-on-year to Rs 1,824 crore, EBITDA swung to Rs 315 crore from negative territory a year earlier, while profit after tax improved to Rs 184 crore from a loss of Rs 83 crore.

“The structural shift is real. Product revenue has grown from 27% of the mix in FY21 to 59% in FY26, and exports now account for 41% of revenue. That’s a business fundamentally changing its character,” said Balaji Rao, Research Analyst at Bonanza.

Beyond optical fibre cables, HFCL is also expanding aggressively into defence and aerospace through the Defsys acquisition. The company is setting up a Rs 1,000-acre ammunition complex in Andhra Pradesh and scaling up its data centre interconnect solutions business, targeting revenue of Rs 400 crore in FY27 and Rs 800 crore in FY28. Its optical fibre cable capacity is set to expand by 25% by December 2026, while backward integration into preforms is expected to reduce raw material costs by 15-20%.

According to international brokerage Nomura, India’s data centre IT load has expanded from around 350 MW in 2019 to nearly 1.5-1.6 GW in 2025, translating into a CAGR of about 29%, compared with roughly 20% globally. As a result, India’s share of global data centre capacity has increased from around 1.5% in 2019 to approximately 2-3% in 2025.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Vanguard Fund’s portfolio is making a strong statement in the Indian equity market — The numbers speak for themselves. Ranked among the top three active foreign institutional investors (FIIs) in the country, Vanguard has built a substantial portfolio of Indian equities through its global funds. As of June 5, 2026, the value of its holdings in 47 BSE-listed companies stood at an impressive Rs 95,903 crore, based on March 2026 quarter shareholding data, representing a sharp 44% increase from Rs 66,403 crore in the December 2025 quarter.

A recent ETMarkets analysis shows that 12 key stocks in Vanguard’s portfolio have generated returns ranging from 10% to 90% so far in CY26. The analysis also highlights two stocks that were newly added to the portfolio during the March 2026 quarter. (Data Source: ACE Equity, Trendlyne)

While markets grappled with global uncertainty and macroeconomic headwinds in CY26, retail investors quietly placed their bets on a select group of companies. A scan of the BSE 500 universe shows that retail investors increased their holdings in nearly 176 stocks during the March quarter. Narrowing the lens further, 73 of these companies, excluding banking and financial stocks, reported healthy net profit margins of over 10%.
Interestingly, despite strong profitability, most of these stocks have delivered negative returns so far in CY26 as market sentiment remained under pressure. Yet, a handful of names managed to defy the trend. We highlight 11 standout stocks that surged 10–40% in CY26, even as broader markets struggled. What makes them noteworthy is that retail investors, defined as individual shareholders holding up to Rs 2 lakh in nominal share capital, steadily increased their stakes in these companies during the March quarter, signalling growing confidence ahead of their strong run-up. (Data Source: ACE Equity

Shares of Awfis Space Solutions surged 9.36% to Rs 394.35 in Tuesday’s trading session after the flexible workspace operator posted a more than two-fold jump in consolidated net profit for the March 2026 quarter, driven by strong demand for managed office spaces and continued expansion across India.

The company reported Q4 FY26 net profit of Rs 23.24 crore, sharply higher from Rs 11.23 crore in the same quarter last year. Revenue momentum remained robust, with consolidated operating revenue rising 21% year-on-year to Rs 410 crore, led by a strong 27% growth in coworking and allied services.

Operational performance also strengthened significantly. Operating EBITDA climbed 31% YoY to Rs 152 crore, while EBITDA margins expanded 290 basis points to 37%, reflecting better scale efficiencies, improved occupancy across mature centres, and operating leverage benefits.

For the full financial year FY26, Awfis delivered its strongest-ever annual performance. Consolidated operating revenue rose 24% YoY to Rs 1,493 crore, supported by a sharp 35% growth in the coworking business. Operating EBITDA increased 37% to Rs 550 crore, with margins improving 350 basis points to 36.8%.

The company’s profit after tax (PAT) for FY26 stood at Rs 71 crore, marking an impressive 66% annual growth. Awfis also reported a sector-leading Return on Capital Employed (ROCE) of 60%, highlighting strong capital efficiency and disciplined execution.

Commenting on the performance, Chairman and Managing Director Amit Ramani said FY26 was a “defining year” for the company, with record revenue, EBITDA, and profitability. He added that demand from Global Capability Centres (GCCs) and Fortune 500 firms continued to accelerate, becoming a structural growth driver for the business.

During FY26, Awfis added 41 new centres and approximately 30,000 operational seats. Its signed network expanded to 266 centres with nearly 184,000 seats spread across 18 cities in Tier 1 and Tier 2 markets, serving around 3,500 clients.The company also highlighted the growing contribution of GCC clients, with over 100 unique GCC customers now accounting for 23% of rental revenue. Several additional mandates have already been signed and are expected to go live in the coming quarters.

Despite the sharp rally, the stock remains significantly below its 52-week high of Rs 718.95. Awfis currently commands a market capitalization of Rs 2,462 crore, while its 52-week low stands at Rs 229.05.

On the valuation front, the stock trades at a price-to-earnings (P/E) ratio of 43.85 and a price-to-book (P/B) ratio of 5.57.

From a technical perspective, the stock’s RSI (14) stands at 58.1, indicating neutral-to-positive momentum. An RSI below 30 is generally considered oversold, while above 70 signals overbought conditions. The stock is currently trading above 6 out of 8 key simple moving averages (SMAs), though it remains below its longer-term 150-day and 200-day SMAs, suggesting that long-term trend confirmation is still awaited.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Bajaj Auto closed the March quarter with its highest-ever quarterly net profit of ₹2,746 crore, up 34% year-on-year, buoyed by record vehicle sales, a richer mix of pricier models, and a favourable rupee.

Revenue from operations rose 32% from a year earlier at ₹16,006 crore in the three months ended March 31. Ebitda jumped 36% at ₹3,323 crore, with margins at 20.8%.

Total vehicle dispatches climbed 24% to 1.37 million units, with domestic motorcycles posting a milestone quarter on the back of product launches in the Pulsar N and NS series. The KTM-Triumph portfolio sustained its strong run with more than 40% growth, while the Chetak brand crossed the 100,000-unit retail milestone in a single quarter for the first time.

Exports exceeded 600,000 units for the quarter, with revenues growing over 30% year-on-year.

Rakesh Sharma, executive director, however, forecast that industry growth in motorcycles will ease in the coming months as increase in fuel and vehicle prices is likely to weigh on consumer sentiment and sales.

“We have already seen signs of sales moderation in the month of April,” Sharma said in a post-earnings media call, referring to the 9% growth in April compared to 20% in the March quarter.

However, he expects the “softness in demand” to impact the “bottom half” (100-125cc) of the market more than the “top half” (150ccc and above). Since Bajaj Auto draws bulk of its sales from the top half, the moderation is unlikely to impact the company, he said. Also, a weaker rupee and strong exports will keep the automaker in good stead, according to Sharma.For the full year ended March 31, revenue from operations rose 17% to an all-time high of ₹58,732 crore. Net profit grew 21% to ₹9,825 crore. Ebitda rose 19% to ₹12,019 crore, with margins improving 30 basis points to 20.5%. Total volumes for the year crossed five million units — up 10%, scaling a new record, surpassing the company’s previous peak in FY19. The full-year performance was driven by strength across domestic and export markets alike, said Sharma.

Commercial vehicle volumes crossed 500,000 units for the first time, exports exceeded two million units, and Chetak revenues topped ₹4,000 crore.

In a separate filing, the company said it has redesignated Sharma as joint managing director with effect from 1 June for a period of 3 years till 2029 subject to shareholders’ approval.

The board recommended a final dividend of ₹150 per share and approved a buyback of up to 4.69 million shares at ₹12,000 each, aggregating ₹5,633 crore — together representing a 100% payout of the full year’s profit after tax.

Bajaj Auto shares closed at Rs 10,314.60 apiece, up 2.7% on the BSE. The benchmark Sensex closed 1.2% higher.

Mutual funds turned quietly aggressive in the March 2026 quarter, raising their stakes in around 82 midcap stocks, a move that often signals deep research, strong conviction, and a long-term bet on growth.
What makes this even more interesting is the contrast with broader market performance. Despite a weak start to CY2026, with most stocks delivering negative returns over the past four months, a select group has defied the trend. About 17 stocks have posted strong double-digit returns, standing out in an otherwise subdued market. Among these, eight midcap names have emerged as clear momentum leaders, rallying anywhere between 25% and 85% so far this year. These are not just random winners, they are attracting meaningful institutional inflows, suggesting that smart money is actively positioning itself in pockets of strength even as the broader market struggles. (Data source: ACE Equity)