Kirloskar Oil Engines shares extended their gains for a second consecutive session, rising sharply after the company disclosed a significant order from digital infrastructure company HyperNext. The stock had already surged to its upper circuit limit in the previous session and continued to attract strong buying interest as investors assessed the long-term growth potential of the deal.

The order involves the supply of power generation solutions for HyperNext's data center infrastructure projects, marking a notable milestone for Kirloskar Oil Engines in the rapidly expanding AI-driven data center ecosystem. Market participants view the contract as a strategic breakthrough that strengthens the company's presence in a segment that has historically been dominated by established global players.

Investor sentiment received an additional boost after JM Financial upgraded the stock to "Buy" from "Add" and increased its target price, citing improved growth prospects following the order win. Analysts believe the development could open new opportunities for the company in India's expanding digital infrastructure and data center market.

The rally reflects growing investor confidence in companies positioned to benefit from rising investments in artificial intelligence infrastructure, cloud computing facilities, and data centers. The order is also seen as a validation of Kirloskar Oil Engines' capabilities in providing critical power backup solutions for large-scale digital infrastructure projects.