Mumbai : Information technology bellwether Tata Consultancy Services (TCS) is closed to hitting the $100-billion mark in terms of market capitalisation as its share price surged nearly 7 per cent on Friday, adding about $6.2 billion to its valuation.
The IT major is set to be the first listed Indian company to achieve this milestone. In the process, it is likely to surpass global management consulting and professional services peer Accenture.
Led by the smart rally in the stock, the company’s market cap moved up by Rs 41,300.92 crore to Rs 6,52,082.92 crore ($98.8 billion). This is Rs 7,917.08 crore short of the $100 billion mark. TCS market valuation had in January 24 this year surged past the Rs 6 lakh crore mark.
The stock jumped 6.76 per cent to settle at Rs 3,406.40 on BSE on Friday.
On NSE, shares of the company rose sharply by 6.62 per cent to close at Rs 3,402.45.
“TCS reported better-than-expected quarterly numbers,” Emkay Global Financial Services said in a report.
Buying was also seen in other IT counters, with Tech Mahindra rising 5.34 per cent, HCL Technologies 4.67 per cent, Infosys 4.02 per cent and Wipro 2.31 per cent on BSE.
If ever there were questions about an Indian company having the required scale and skillsets of a global player, “there are no issues there”, said Sandip Agarwal, analyst at Edelweiss Securities.
Agarwal said the key was manpower, which TCS had aplenty. In a report titled ‘Most bullish in a decade’, Agarwal said that he anticipated a structural uptick in growth as the proportion of high-growth digital verticals rise.
The digital base has gained significant heft, and large players such as Accenture and TCS are positive on this segment, with consistent increases in deal sizes, according to the report by Edelweiss Securities.
Matching global players in terms market capitalisation would also help TCS attract more foreign investors and win major business deals, dealers and analysts said.