Tech Mahindra Surges Nearly 4% in Early Trade; IT Rally Fuelled by Iran De-escalation

Mumbai, May 19: Shares of Tech Mahindra Ltd (TECHM) surged sharply in early trade on Tuesday, riding the wave of a broad-based rally in information technology stocks as easing geopolitical tensions in the Middle East lifted risk sentiment and triggered a decisive rotation into export-oriented sectors.

The stock opened at ₹1,446.30 on the NSE against its previous close of ₹1,430.00, and quickly gained momentum to touch an intraday high of ₹1,490.80, reflecting strong buying interest from the opening bell. As of the latest tick, TECHM was trading at ₹1,485.80, up ₹55.80 or 3.90% from its prior session’s close, with a VWAP of ₹1,479.88 indicating that the bulk of the day’s trades were executed at elevated levels.

The intraday chart presented a near-textbook gap-up opening, with the stock jumping sharply from ₹1,446.30 at open to breach the ₹1,480 mark within the first few minutes of trade before consolidating in a narrow band between ₹1,480 and ₹1,490 through the morning session.

The intraday low of ₹1,445.60 was registered right at the open, after which the stock found firm support and sustained its gains with minimal retracement, suggesting that buyers were in firm control and dip-buying was swift. Total quantity traded stood at over 4.17 lakh shares combined on the buy and sell side, with the sell book marginally dominant at 51.33% against 48.67% on the buy side, indicating some profit-booking pressure at higher levels even as the broader upward bias held.

Weekly Trend

The weekly chart told a sharper recovery story. TECHM had started the week of May 12 around ₹1,395, before declining to a weekly low of approximately ₹1,338 on May 14 — its softest level of the past seven trading sessions — and has since staged a strong reversal, recovering nearly ₹148 from that trough to trade close to ₹1,483 by Tuesday morning. The near-vertical recovery in the second half of the week underscored the resilience in large-cap IT names, with Tuesday’s gap-up further accelerating the rebound.

Fire Incident at Warehouse Unit in Chennai

In another development related to the IT company, days after a fire broke out at Tech Mahindra’s warehouse facility inside the ELCOT SEZ in Sholinganallur on May 15, the Voice of IT Professionals (VOIP) demanded a wider fire safety audit across Chennai’s OMR IT corridor, alleging lapses in inspection, hazardous waste management and emergency preparedness within the campus, DT Next reported on Tuesday morning.

According to DT Next, the employees’ body, in a statement, called for an independent fire safety audit of IT campuses, warehouses and peripheral structures along the OMR corridor, along with mandatory disclosure of fire safety clearances, regular evacuation drills and public reporting of all fire incidents inside IT SEZs. VOIP joint secretary Rajan said the May 15 incident “should not be treated as an isolated incident,” with the organisation alleging that accumulated dump material and e-waste inside the campus may not have been cleared properly.

Source: https://www.nseindia.com/get-quote/equity/TECHM/Tech-Mahindra-Limited