Kirloskar, Eclerx, HCL Infosystems explode higher: What’s driving the rally?

Indian equity markets staged a broad-based rally on May 15, 2025, as investor sentiment improved across mid- and small-cap segments. The top 20 gainers list was populated by a diverse set of companies, ranging from industrials and digital tech to engineering, auto ancillaries, and paper manufacturing. Stocks like Kirloskar Oil Engines, Eclerx Services, Apar Industries, and HCL Infosystems recorded significant upside, with double-digit percentage gains seen across the board.

The rally came despite global uncertainties around U.S. monetary policy and Chinese industrial output. Domestically, investor confidence was supported by a dip in inflation, robust March quarter earnings across sectors, and clarity around India’s infrastructure-led policy stance ahead of the FY26 Budget. Foreign portfolio investors remained net buyers, while retail participation surged across speculative and low-float counters, further reinforcing positive sentiment.

What Led Kirloskar Oil Engines to Surge Nearly 17%?

Kirloskar Oil Engines Limited ended the session up 16.79 percent at ₹858.65, driven by strong institutional interest following the release of its March quarter results. The company reported healthy growth in revenue and operating margins, particularly in the power generation and industrial engines segment. Market participants noted that sustained demand from the commercial real estate, backup power, and agriculture segments had strengthened the company’s forward order book.

Brokerage commentary also highlighted Kirloskar’s favorable positioning within India’s evolving hybrid energy landscape. The government’s ₹2.5 trillion policy for renewable-integrated backup power systems was cited as a long-term catalyst, with Kirloskar expected to play a key role in rural electrification and industrial energy security.

How Eclerx Outperformed on Midcap IT Optimism

Eclerx Services saw its stock rise 14.67 percent to close at ₹3,152.00 as optimism in the mid-tier IT services space continued to build. The company benefited from a market-wide rotation out of large-cap tech and into leaner, more agile digital service providers. Analysts noted that Eclerx’s exposure to high-value segments like automation consulting, AI-driven analytics, and data ops positioned it well amid evolving IT spend patterns in the U.S. and Europe.

Investors were also encouraged by improving EBIT margins and commentary from management suggesting robust demand pipelines in BFSI, telecom, and digital commerce sectors. Market volumes showed participation from both domestic mutual funds and select foreign institutions.

Apar Industries Benefits from Export-Focused Growth

Apar Industries continued its upward momentum, climbing 13.14 percent to ₹7,838.00 on the back of robust export orders for conductors, specialty cables, and transformers. The company’s recent order wins from utilities in Latin America and Southeast Asia have reinforced its export-led growth strategy. With India expanding its global electrical equipment footprint under the “Make in India for the World” initiative, Apar is emerging as a key play on high-margin engineering exports.

Traders also speculated on the possibility of MSCI Small Cap Index inclusion in the coming quarters, which could attract additional passive flows. The stock recorded a notable uptick in delivery-based volumes during the session.

HCL Infosystems Hits Upper Circuit on Speculative Action

HCL Infosystems hit the 20 percent upper circuit at ₹18.64, driven by speculative flows from retail and proprietary trading desks. The surge came on the back of heavy volume exceeding 92 million shares, although there was no new regulatory filing or corporate disclosure to support the move.

Market watchers suggested that the rally was part of a larger trend involving legacy IT firms that had become low-float value bets. Some retail investors appear to be positioning for a possible asset monetisation or merger-related announcement, although analysts cautioned that the gains were sentiment-driven and not based on improved fundamentals.

Nelcast Rides Auto Recovery and Casting Demand

Nelcast rose 19.99 percent to close at ₹126.28, driven by upbeat investor sentiment in the auto component space. The company, a key supplier of SG iron castings to commercial vehicle and tractor OEMs, has seen a resurgence in order volumes due to improved rural demand and higher freight movement.

The stock’s performance was bolstered by a recovery in tractor sales and replacement demand in the heavy-duty segment. With strong earnings momentum and operating leverage playing out, Nelcast is attracting renewed interest from value-focused investors.

Why Did REPL Rally 20%?

Rudrabhishek Enterprises, or REPL, closed at ₹207.90 after rising the full 20 percent intraday. The smart city and urban infrastructure consultancy firm benefited from speculative accumulation amid growing anticipation of tender announcements under the second phase of India’s Smart Cities Mission. The company’s diversified business across GIS, building information modelling, and project management consultancy has positioned it well for public sector infrastructure assignments.

Investors were also reacting to the company’s recent financial performance, which showed margin expansion and increasing project visibility, particularly in Tier-2 and Tier-3 urban markets.

Intense Technologies Gains from Digital Enterprise Tailwinds

Intense Technologies saw its share price surge 18.44 percent to ₹113.50 as investors bet on continued growth in enterprise automation and digital customer engagement platforms. The company has a growing presence in telecom billing, customer experience management, and SaaS-based service provisioning. Its client base, spanning Asia and Latin America, has also expanded over the past year.

The market rewarded its low-leverage balance sheet and recurring revenue model, which are seen as positive differentiators within the smallcap tech universe.

MOTOGENFIN Surges 20% on Earnings Rebound

Motogen Finvest jumped 20 percent to ₹29.46 after posting a return to profitability in its Q4 FY25 earnings release. The company reported an improvement in net interest margins and better asset quality in its restructured secured lending portfolio. The move came amid strong volume and speculative activity, with investors possibly factoring in corporate action or promoter-level changes.

Market participants noted that the low float in the stock amplified the impact of fresh buying, leading to sharp price discovery within a single session.

BASML-RE1 and GATECH-RE1 Rally on Retail Arbitrage

BASML-RE1, GATECH-RE1, and GATDVR-RE each gained between 12.5 to 31.56 percent, reflecting renewed interest from retail investors in rights entitlement trades. These counters typically draw speculative flows as traders exploit pricing arbitrage between the RE scrip and the underlying equity. While price movements in such instruments are highly volatile, they reflect wider retail participation in primary market-linked opportunities.

The broader rally in RE scrips also followed increased awareness driven by investor education initiatives, with SEBI encouraging participation in structured corporate actions.

Infrastructure Stocks BLSE and Vascon Engineer Gains Reflect Capex Optimism

BLSE advanced 15.16 percent to ₹181.20, while Vascon Engineers gained 13 percent to ₹50.50. Both companies have benefited from India’s continuing public capex thrust. Vascon, in particular, is understood to be L1 bidder on several affordable housing and EPC contracts in Maharashtra.

BLSE, meanwhile, is expected to participate in upcoming government logistics infrastructure development schemes. The session saw above-average volumes in both counters, indicating strong interest from infrastructure-focused domestic funds.

TI Financials, REMSONSIND, DIGISPICE Record Strong Upmoves

TI Financials rose nearly 13 percent to ₹342.00 on the back of speculative accumulation linked to anticipated restructuring moves. Remsons Industries, which manufactures gear shifters and control cables for the automotive sector, jumped 14.48 percent to ₹137.40. Traders highlighted recent contract wins and growing EV component orders as catalysts for the rally.

Digispice Technologies ended 12.44 percent higher at ₹22.86, benefiting from the broader rally in digital transformation and fintech-linked counters. The company’s engagements in telecom provisioning and e-governance software were seen as strong plays on India’s digitalisation theme.

Specialty Engineering and Legacy Firms Join the Party

Foseco India Limited rose 14.02 percent to ₹4,650.00 as part of the uptick in manufacturing and industrial technology stocks. The company, which provides advanced metallurgical solutions for the foundry industry, has seen volume growth amid increased capital goods production.

Manugraph India gained 12.58 percent to ₹19.24, driven by speculative flows and low float. Though primarily a printing press machinery firm, Manugraph has been repositioning itself with automation technologies in packaging and industrial machinery.

Khaitan Limited Recovers on Turnaround Hopes

Khaitan Limited closed 12.29 percent higher at ₹115.11, extending its rebound on expectations of a business turnaround. The company, known for its electrical appliances and legacy branding, is reportedly restructuring its distribution model to improve margins and reduce working capital stress.

The stock has attracted contrarian interest from retail investors betting on brand-led revival amid India’s growing demand for branded electrical fittings and consumer durables.

Broader Market and Sectoral Trends

The rally on May 15 was underpinned by falling inflation, stable monetary policy expectations, and sustained capital expenditure at both public and private levels. The Reserve Bank of India’s recent statement indicating no urgency for rate hikes, combined with a fall in CPI to 4.8 percent, has buoyed domestic liquidity. Foreign portfolio investors have returned as net buyers, particularly in midcap manufacturing and IT services.

Sectors such as capital goods, auto ancillaries, IT midcaps, and infrastructure EPC recorded the strongest gains. While benchmark indices like Nifty and Sensex rose modestly, the real momentum was visible in the Nifty Midcap 150 and BSE SmallCap indices, both of which outperformed by a wide margin.

Outlook: Midcap Momentum Poised to Continue?

Analysts expect the midcap rally to continue, especially in companies demonstrating earnings visibility, export focus, and structural demand tailwinds. The upcoming Budget 2025–26 is likely to reinforce India’s infrastructure, digitalisation, and manufacturing-led growth agenda, which may further support themes that dominated today’s gainers list.

However, market experts caution against chasing low-float and rights entitlement stocks without adequate risk assessment. With valuations rising in select pockets, portfolio selectivity and earnings-backed stock picking are likely to remain critical in sustaining investor gains.