TCS pips RIL to become the most valuable firm on Dalal Street, stock at record high
The market cap of TCS crossed the Rs 6 lakh crore mark, rallying nearly 5 per cent to its record high level.
Country's largest software services firm Tata Consultancy Firm (TCS) has once again become the most valuable company in terms of market capitalisation (market cap), beating Reliance Industries, which earned this tag in 2017.
RIL was, however, the nation’s first company to cross Rs 6 trillion achievement.
The market cap of TCS crossed the Rs 6 lakh crore mark, rallying nearly 5 per cent to its record high level of Rs 3254.80.
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At 10:50 am, the market cap of TCS quoted Rs 6.2 lakh crore on the BSE, while Reliance Industries (RIL) was down over 1 per cent, quoting Rs 6.1 lakh crore market cap.
TCS surged amid broader gains in IT stocks with the Nifty IT index being the sole sectoral gainer among NSE Indices.
The index rose nearly 4 per cent to its record high of 13,553.95 points. TCS, HCL Tech, KPIT and Tech Mahindra contributed most to the gains.
So far this year, TCS has advanced 15%, Infosys 10%, Wipro 2.4%, and HCL Technologies 8.6%, while Tech Mahindra, Mindtree, Mastek and Cyient gained in the range of 9 per cent to 23 per cent.
IT stocks spurted after global brokerage firm Morgan Stanley Research noted earlier in January that a turnaround in IT spending is imminent, which could quickly turn sentiment on these stocks.
“Large cap stocks have underperformed the Sensex for the last three years. Valuations are at or below long-term averages and an improving global macro could spur tech spending, which could re-rate stocks, in our view,” said a Morgan Stanley report, dated 15 January.
The brokerage house has upgraded Infosys, Tech Mahindra and HCL Technologies to overweight as valuations are at or below long-term averages. The firm expects that an improvement in banking, financial services and insurance and retail verticals will help TCS and hence it upgraded it to “equalweight”.
Meanwhile, TCS on January 10 reported 1.3 per cent quarter-on-quarter (QoQ) rise in net profit at Rs 6,531 crore for the quarter ended December 31, 2017, in-line with expectations. It had posted net profit of Rs 6,446 crore in the sequential quarter ended September 30, 2017.