Mumbai: IT major Tata Consultancy Services has become the second company to cross market capitalisation of Rs 10 lakh crore after Reliance Industries.

TCS shares gained over 7.5 per cent on Monday touching an all time high price of Rs 2,727 after the company in a late Sunday night announcement said that “the Board of Directors will consider a proposal for buyback of equity shares of the Company, at its meeting to be held on October 7, 2020.”

As the second quarter earnings season for IT companies takes off later this week, TCS buyback announcement is the second forward looking statement after HCL Technologies, expected to reflect in the upcoming quarterly results of the IT sector.

TCS board is meeting on Oct.7 to approve the financial results for the second quarter ended on September 30.

TCS shares finally closed 7.30 per cent up at Rs 2,706.85 on BSE. The market capitalisation of TCS at Monday’s closing price stands above Rs 10.15 lakh crore on BSE.

Last share buyback by TCS worth Rs 16,000 crore took place in August-September 2018.

Other IT stocks like Wipro (6.73 per cent) and Infosys (3.00 per cent), HCL Technologies (1.25 per cent), also gained anticipating similar buyback announcements during Q2 earnings season.

BSE IT index gained 4.06 per cent topping the sectoral gainer chart.The other gainers included Tech Mahindra (2.26 per cent), Larsen & Toubro Infotech (2.30 per cent).