Info Edge Gains 1.33% Despite 52-Week Low and Rising Derivatives Activity

Strong Start on 9 February Boosts Weekly Performance

Info Edge began the week on a positive note, rallying 4.38% to Rs.1,178.15 on 9 February 2026, supported by a volume of 44,176 shares. This gain significantly outpaced the Sensex’s 1.04% rise to 37,113.23, signalling early bullish momentum. The strong opening was likely driven by positive sentiment around the company’s business prospects and sectoral developments, setting a constructive tone for the week ahead.

Moderate Gains on 10 February Amid Market Stability

The upward trend continued on 10 February with the stock adding 1.28% to close at Rs.1,193.25, albeit on lower volume of 23,908 shares. The Sensex also advanced by 0.25% to 37,207.34, reflecting a broadly stable market environment. Info Edge’s outperformance on both days underscored investor interest despite emerging caution in the broader IT and e-commerce sectors.

Three-Day Decline and New 52-Week Low Signal Technical Weakness

From 11 to 13 February, Info Edge’s stock price declined sharply, falling 1.71% on 11 February to Rs.1,172.90, followed by a 2.20% drop on 12 February to Rs.1,147.15, and a further 0.30% fall on 13 February to Rs.1,143.75. The three-day cumulative loss of 4.15% culminated in an intraday 52-week low of Rs.1,105 on 13 February, marking a significant technical setback. This downtrend occurred despite the Sensex showing mixed performance, with minor gains on 11 February (+0.13%) but declines on 12 (-0.56%) and 13 February (-1.40%).

The stock’s fall below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — highlights sustained bearish momentum. The decline also outpaced the IT - Software sector’s 3.09% drop on 13 February, indicating relative weakness within its peer group. Delivery volumes decreased by 18.38% on 12 February compared to the five-day average, suggesting reduced investor participation in the cash market during this period.

Surge in Derivatives Open Interest Reflects Bearish Market Positioning

On 13 February, Info Edge experienced a sharp 12.65% increase in open interest (OI) in its derivatives segment, rising from 48,369 to 54,487 contracts. This surge occurred alongside a total traded volume of 72,145 contracts, with futures valued at approximately ₹50,617 lakhs and options at ₹26,223.66 crores, amounting to a combined derivatives value of ₹56,168.69 lakhs. Despite this heightened activity, the underlying stock price declined by 0.45% on the day, closing near its intraday low.

The rise in OI amid falling prices typically indicates fresh short positions being established, reflecting bearish sentiment among traders. The weighted average price of traded contracts clustering near the day’s low further confirms selling pressure. The elevated options activity relative to futures suggests increased hedging or speculative volatility plays, signalling market participants’ cautious stance on the stock’s near-term prospects.

Q3 FY26 Results Highlight Robust Recruitment Business Growth

Despite the technical challenges, Info Edge reported a strong quarterly performance for Q3 FY26. The recruitment segment powered the quarter, contributing to net sales of Rs.805.45 crore and a profit after tax (PAT) of Rs.1,035.72 crore for the nine-month period. This represents a substantial 151.6% increase in profits over the last year, underscoring the company’s operational strength amid valuation concerns.

Info Edge’s financial health remains solid, with a zero debt-to-equity ratio and a high debtors turnover ratio of 246.45 times for the half-year, reflecting efficient receivables management. The company’s price-to-book ratio stands at 1.5, which is relatively expensive compared to peers, while return on equity (ROE) is modest at 2.7%. The price/earnings to growth (PEG) ratio of 0.4 suggests undervaluation relative to earnings growth, presenting a nuanced fundamental picture.

Weekly Price Performance: Info Edge vs Sensex

Key Takeaways

Positive Signals: Info Edge outperformed the Sensex with a weekly gain of 1.33% despite sectoral and market headwinds. The strong Q3 FY26 results, driven by the recruitment business, demonstrate robust earnings growth and operational efficiency. The company’s zero debt and high institutional ownership (52.15%) provide financial stability and investor confidence.

Cautionary Signals: The stock’s decline to a 52-week low and sustained trading below all major moving averages indicate persistent technical weakness. The sharp rise in derivatives open interest amid falling prices suggests increased bearish positioning and potential for further downside or volatility. Valuation metrics such as a relatively high price-to-book ratio and modest ROE warrant careful monitoring.

Conclusion

Info Edge (India) Ltd’s week was characterised by a complex mix of fundamental strength and technical challenges. While the company delivered a strong quarterly performance and maintained solid financial health, the stock faced significant selling pressure, culminating in a 52-week low and heightened bearish sentiment in the derivatives market. The modest weekly gain relative to the Sensex reflects resilience but also underscores the cautious stance investors are adopting amid sectoral headwinds and valuation concerns. Monitoring price action alongside derivatives activity will be crucial in assessing the stock’s near-term trajectory.

Unlock special upgrade rates for a limited period. Start Saving Now →