HFCL Sees Fresh Buying as Kotak Mahindra Mutual Fund Acquires 0.5% Stake

Kotak Mahindra Mutual Fund Picks 0.5% Stake in HFCL; Stock Soars 5.5% on Strong Buying Momentum

HFCL shares surged sharply on Tuesday, climbing 5.5% to close at ₹78.3, after Kotak Mahindra Mutual Fund (MF) acquired over 0.5% stake in the telecom and optical fiber cable manufacturer through open market transactions. The buying by a marquee institutional investor triggered renewed optimism among traders and investors, pushing the stock to its upper Bollinger band with a long bullish candle formation, signaling strong upward momentum.

Kotak Mahindra Mutual Fund Buys ₹58.8 Crore Worth of HFCL Shares

According to exchange data, Kotak Mahindra Mutual Fund purchased 74.9 lakh shares of HFCL Ltd, representing 0.5% of the company’s paid-up equity, at an average price of ₹78.45 per share. The total transaction value stood at approximately ₹58.8 crore.

The strategic purchase by one of India’s leading mutual funds has boosted investor sentiment toward the mid-cap telecom equipment maker, which has been expanding aggressively in both optical fiber and 5G network solutions.

“The entry of a reputed domestic institutional investor like Kotak Mahindra Mutual Fund in HFCL is a strong validation of the company’s growth prospects and financial stability,” said a market analyst tracking mid-cap stocks. “This deal could potentially attract more institutional interest and improve the stock’s liquidity profile.”

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HFCL Shares Extend Gains; Technical Indicators Turn Bullish

Following the stake purchase, HFCL stock witnessed robust buying interest throughout the trading session. On the charts, the stock moved past key resistance levels, closing at ₹78.3, up 5.5% from the previous close.

Technically, HFCL formed a long bullish candle on the daily chart and reached the upper Bollinger band, a signal often interpreted as a breakout continuation pattern. Analysts noted that the stock has now entered a bullish momentum zone, with immediate support seen around ₹73 and potential upside targets of ₹82–₹85 if the buying trend continues.

“HFCL’s price action and volume spike indicate institutional accumulation,” said a technical analyst at a Mumbai-based brokerage. “The breakout above the ₹76 resistance confirms renewed strength in the counter, supported by healthy fundamentals.”

HFCL: Expanding Presence in Optical Fiber and 5G Infrastructure

HFCL Ltd, formerly known as Himachal Futuristic Communications Limited, is one of India’s leading manufacturers of optical fiber cables (OFCs), telecom equipment, and network solutions. The company has established a strong domestic footprint and is steadily expanding its international operations, particularly in Europe, Africa, and the Middle East.

In recent years, HFCL has diversified into 5G infrastructure development, defense communication, and smart city projects, positioning itself as a key beneficiary of India’s digital transformation and telecom capex cycle.

The company has also been ramping up production capacity for optical fiber cables and FTTH (fiber-to-the-home) solutions to meet rising global demand. With India’s telecom sector witnessing significant investments in broadband and mobile infrastructure, HFCL is expected to play a vital role in enabling next-generation connectivity.

Other Major Market Moves: Annapurna Swadisht and Jay Bee Laminations

Apart from HFCL, several other mid-cap and small-cap counters saw notable action on Tuesday due to institutional buying.

Varanium Capital Advisors acquired stakes in two companies — Annapurna Swadisht and Jay Bee Laminations — through open market deals.

• The fund purchased 2.3 lakh shares (1.05%) in Annapurna Swadisht, a leading snack food manufacturer, at ₹273.54 per share, amounting to ₹6.29 crore.

• It also bought 1.35 lakh shares (0.6%) in Jay Bee Laminations, a transformer components maker, at ₹145.28 per share, valued at ₹1.96 crore.

Following these transactions:

• Annapurna Swadisht shares rallied 6.3% to ₹255.50 after several sessions of consolidation.

• Jay Bee Laminations rebounded 5.53% to ₹140.2 after hitting an all-time low of ₹129 earlier in the day.

Analysts view these moves as part of a broader trend of selective institutional accumulation in high-growth small-cap names with improving fundamentals.

Cube Highways Trust Sees Institutional Interest as Well

In another notable deal, Anil Arora acquired 73.75 lakh units of Cube Highways Trust at ₹135.5 per unit, translating to a total investment of ₹99.93 crore.

The infrastructure-focused InvIT (Infrastructure Investment Trust) remained stable during the session, with the unit price unchanged. Analysts expect such large-scale purchases to further boost liquidity and institutional participation in India’s infrastructure investment space.

Investor Sentiment Strengthened by Institutional Buying

Institutional participation in mid-cap counters like HFCL, Annapurna Swadisht, and Cube Highways Trust highlights rising confidence in India’s manufacturing and infrastructure growth story.

“The renewed buying by mutual funds and institutional investors indicates confidence in India’s long-term growth outlook despite near-term market volatility,” said an investment strategist. “Such moves often precede re-rating phases for these stocks, especially when backed by strong earnings visibility.”

Outlook: HFCL Poised for Growth as Institutional Interest Builds

Analysts remain optimistic about HFCL’s medium-term prospects, supported by its expanding product portfolio, strategic investments, and robust order book in telecom and optical fiber segments. The latest purchase by Kotak Mahindra Mutual Fund is likely to act as a sentiment booster for the stock.

With India’s push toward 5G expansion, broadband infrastructure, and smart connectivity, HFCL is well-positioned to capitalize on upcoming opportunities in the telecom ecosystem.

In the short term, traders expect the stock to trade in the ₹75–₹85 range, with potential upside if volumes remain elevated.

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