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. According to reports from The Economic Times, Sterlite Tech shares gained 5% to their day's high of ₹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. As reported by The Economic Times, 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.
Both companies are key players in optical fiber cable manufacturing, positioned to benefit from India's booming data center industry driven by digitalization and AI demand. According to The Economic Times, India's data center 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. This growth has increased India's share of global data center capacity from around 1.5% in 2019 to approximately 2-3% in 2025.
Sterlite Technologies has emerged as the biggest winner from the data center theme, soaring 488% in 2026. As reported by The Economic Times, 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 ₹655, CLSA expects the deal to reinforce the company's competitiveness in global markets and models a 49% EBITDA CAGR between FY26 and FY29 while maintaining an 'Outperform' rating.
HFCL has been among the standout performers, gaining 170% in 2026. According to The Economic Times, the March quarter marked a sharp turnaround for the company with revenue nearly doubling year-on-year to ₹1,824 crore, EBITDA swinging to ₹315 crore from negative territory a year earlier, while profit after tax improved to ₹184 crore from a loss of ₹83 crore. The company is expanding aggressively into defence and aerospace through the Defsys acquisition and setting up a ₹1,000-acre ammunition complex in Andhra Pradesh.
