NASDAQ listed Rediff.com‘s share price has gone up substantially over the last few weeks: in the last week alone, it was up 38% to $5.64 on September 24th 2010, and at this price, it is 190% higher than $1.94% on August 27th.

Sify Technologies too has been increasing: from $1.24 (close to its 52 week low of $1.18) on August 27th, its stock price closed 108% up at $2.46 on September 24th. Sify, however, is now more of an enterprise services and data center play than a consumer Internet company.

Two events appear to be pushing these stock prices up: MakeMyTrip’s blockbuster IPO, which appears to have resulted in a re-rating of Indian Internet companies, and Rediff’s Indian Broadband Boom, following the acquisition of 3G spectrum by telecom operators in India. More at StreetInsiderSmartrendZacks and a discussion in the comments at Barrons.

At one time in the last 52 weeks, Rediff’s market cap was around $50 million, and has now gone up to $156.39 million.

I’d been involved in a debate in comments on Seeking Alpha, where analyst Rash Menaria had suggested that Rediff is a great stock pick, and specifically hinted at Rediff closing a search deal in India, though no source of information was disclosed (or forthcoming from Menaria on questioning). I’d addressed specific points made by Menaria here. We don’t make stock market recommendations, and despite the upsurge in stock price, my views on Rediff as a business remain the same: I don’t think it is well positioned to take advantage of India’s broadband boom, following the 3G auctions, and I feel that the Rediff management doesn’t share enough detailed information about its quarterly performance, or deployment of capital. Share prices are transient.

Also read:

Rediff
– Rediff Reported Rs. 50 Crore Of Online Advertising From India In FY10
– Why Comparing In.com With Rediff Is Incorrect
– Rediff.com: Still Drinking Its Own Kool Aid

Sify
Sify To Raise $86 Million For Indian Entity From Promoter Group; Indian IPO?
Sify Prepares For Decline Of Cybercafes With VAS; $3.23 Million Loss