Key Events This Week
2 Feb: Intraday low amid price pressure at Rs.104.95
3 Feb: Significant gap up and intraday high at Rs.129
4 Feb: Continued gains with strong volume support
5 Feb: Valuation shifts amid rally, P/E ratio spikes
6 Feb: Minor correction closes week at Rs.132.45
2 February 2026: Intraday Price Pressure Tests Support
Sterlite Technologies Ltd began the week under pressure, with its share price falling sharply by 7.34% intraday to a low of Rs.104.95. This decline contrasted with the broader market’s resilience, as the Sensex closed down 1.03%. The stock’s drop interrupted a short-term upward trend and was attributed to profit-taking and technical resistance near the 100-day moving average. Despite this setback, the stock remained above key moving averages, signalling underlying support. The volume of 570,648 shares indicated active trading amid the volatility.
3 February 2026: Gap Up and Intraday High Signal Strong Recovery
On 3 February, Sterlite Technologies Ltd staged a dramatic turnaround, opening with a 13.59% gap up and reaching an intraday high of Rs.129, a 17.27% increase from the previous close. The stock closed the day at Rs.124.55, up 13.23%, significantly outperforming the Sensex’s 2.63% gain. This surge was supported by strong buying interest and the stock trading above all major moving averages, including the 100-day and 200-day averages. The volume surged to 898,682 shares, reflecting heightened investor enthusiasm. Technical indicators showed a mixed but improving momentum, with weekly MACD remaining bearish but monthly indicators turning bullish.
4 February 2026: Continued Gains Amid Sector Strength
The rally extended on 4 February, with the stock closing at Rs.129.40, up 3.89%. The Sensex also advanced modestly by 0.37%. Sterlite Technologies maintained its position above key moving averages, supported by a volume of 468,032 shares. The stock’s outperformance within the Telecom - Equipment & Accessories sector underscored its resilience amid mixed market conditions. Technical momentum remained cautiously optimistic, with Bollinger Bands indicating bullish momentum on weekly and monthly charts.
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
5 February 2026: Valuation Metrics Shift Amid Rally
On 5 February, Sterlite Technologies Ltd continued its ascent, closing at Rs.134.15, up 3.67%. However, the rally brought a notable shift in valuation metrics, with the price-to-earnings (P/E) ratio soaring to 371.5 times earnings, a significant premium compared to industry peers. The price-to-book value rose to 3.08, and other multiples such as EV/EBIT and EV/EBITDA also increased, signalling an expensive valuation. Despite the strong price momentum, profitability metrics remained modest, with ROCE at 5.06% and ROE at 0.19%. This divergence between price appreciation and fundamentals suggests caution amid stretched valuations. The volume surged to 931,803 shares, reflecting active trading interest.
6 February 2026: Minor Correction Closes Week
The week concluded with a slight pullback on 6 February, as the stock closed at Rs.132.45, down 1.27% from the previous day. The Sensex edged up 0.10%, closing at 36,730.20. The reduced volume of 190,236 shares indicated a quieter session following the week’s volatility. Despite the minor correction, Sterlite Technologies ended the week with a substantial 24.60% gain, far outpacing the Sensex’s 1.51% rise. Technical indicators suggest the stock remains in a high beta category, prone to amplified price swings, with mixed signals from daily and monthly momentum indicators.
Sterlite Technologies Ltd or something better? Our SwitchER feature analyzes this small-cap stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Daily Price Performance: Sterlite Technologies Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.110.00 | +3.48% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.124.55 | +13.23% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.129.40 | +3.89% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.134.15 | +3.67% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.132.45 | -1.27% | 36,730.20 | +0.10% |
Key Takeaways
Strong Outperformance: Sterlite Technologies Ltd surged 24.60% over the week, vastly outperforming the Sensex’s 1.51% gain, driven by a combination of technical momentum and sectoral strength.
Volatility and Momentum Shifts: The week featured significant intraday swings, including a sharp intraday low on 2 February and a powerful gap-up rally on 3 February, reflecting the stock’s high beta nature and sensitivity to market sentiment.
Technical Indicators Mixed: While daily moving averages showed mild bearishness at times, monthly momentum indicators and volume trends suggested a cautiously bullish outlook, indicating a potential inflection point in price action.
Valuation Concerns: The rapid price appreciation pushed valuation multiples to elevated levels, with a P/E ratio exceeding 370 times earnings, raising questions about sustainability given modest profitability metrics.
Sector Context: Operating within the Telecom - Equipment & Accessories sector, Sterlite Technologies demonstrated relative strength compared to peers, supported by robust volume and technical positioning.
Conclusion
Sterlite Technologies Ltd’s week was characterised by exceptional price gains and heightened volatility, underscoring its status as a high beta stock within a dynamic sector. The strong rally, led by a significant gap-up and sustained buying interest, propelled the stock well above key moving averages and outpaced the broader market by a wide margin. However, the accompanying surge in valuation multiples and mixed technical signals advise caution. Investors should monitor forthcoming earnings and sector developments closely, as the stock navigates a phase of stretched pricing amid evolving market momentum.
Unlock special upgrade rates for a limited period. Start Saving Now →
