This mid-cap IT party is getting lit; NIIT, Datamatics, KPIT Tech, eClerx Srvcs surge 6-20%

Since Federal Reserve Chair Jerome Powell hinted at adjusting the US central bank's monetary policy, raising hopes for a rate cut in the upcoming September meeting, the information technology sector has surged back into the spotlight. Stocks, especially those belonging to the mid-cap space like NIIT, Datamatics Global Services, KPIT Tech, and eClerx Services, have surged 6-20 percent in trade on August 27.

The party in the midcap IT space is basking on expectations of strong growth prospects and reasonable valuations offered by this pocket in the market. Aside from these sectoral expectations, stock-specific triggers also led to the spike in several midcap IT names.

Take NIIT for example, the stock is up 16 percent today, extending its uptrend to the eighth straight session. Not just that, the stock also skyrocketed 20 percent in the previous session after veteran investor Ramesh Damani bought a 0.6 percent stake in the company last week.

On the other hand, a sharp spike in volumes in the counters of KFIN Tech, Tata Elxsi and eClerx Services, lifted these shares 6-10 percent higher. As for Datamatics Global Services, the company's partnership with global tech major Microsoft took the stock to its 20 percent upper circuit.