Why Share Price Of Sonata Software Is Skyrocketing Today

Why Share Price Of Sonata Software Is Skyrocketing Today

Sonata Software Limited‘s shares are skyrocketing in early trading on Monday.

What Happened: The shares traded over 8% higher to hit a fresh 52-week high at ₹739.80 on Monday.

It isn’t immediately clear what is driving the latest surge in the share price. The information technology services company on Feb. 15 announced entering a strategic partnership with software-as-a-service (SaaS) company Freshworks.

Sonata shares’ trading on Monday. Chart, courtesy of TradingView

Sonata would jointly resell California, U.S.-based Freshworks’ business software to small and mid-market India-based businesses.

It’s worth noting that Freshworks — which is listed on the Nasdaq exchange in the United States — has not seen its shares react to the news in the past week. The SaaS company’s shares last traded at $15.76 (₹1,303.5) on Friday, down about 0.8% in five sessions.

Several other major IT stocks were mostly trading flat in early trading on Monday, with the S&P BSE Information Technology index up 0.9% on Monday.

Infosys Ltd. shares traded about 1% higher at ₹1,598.30. HCL shares were up 1.6% and Tech Mahindra shares were up 1.8%.

Price Action: Sonata Software shares traded 7.8% higher at ₹733 at the time of writing on Monday, with an intraday high of ₹739.80.