India's largest software company TCS on Wednesday briefly toppled ONGC as the country's third most valued company with its market capitalisation soaring to over Rs 2.31 lakh crore, driven by a spurt in share price.
Tata Consultancy Services (TCS) claimed the position of third most valued company with over 6 per cent spurt in its share price.
The scrip opened on a bullish note on the Bombay Stock Exchange (BSE) at Rs 1,169 and then surged to touch an intra-day high of Rs 1,182.30, thereby increasing the market valuation of the company to Rs 2,31,402 crore.
ONGC dropped to the fourth position with a market capitalisation of Rs 2,30,220 crore.
Reliance Industries and Coal India with M-cap of Rs 3.10 lakh crore and Rs 2.57 lakh crore, respectively, remained the top two most valued companies, according to the data available with BSE.
At the close of market hours, however, TCS share prices lost its initial gains, bringing down its M-Cap to Rs 2.30 lakh crore, a tad below ONGC's which retained the No. 3 position.
"The fundamentals of TCS are looking quite good, the management is also very optimistic about its future prospects, besides, the information technology sector as a whole is also showing strength," Ashika Stock Broking Research Head Paras Bothra said.
There has been a downslide for ONGC which once used to be the most valued company. It lost its pre-eminence position to Reliance Industries first, and later Coal India also overtook it. Now, though for a brief time, TCS' M-Cap has zoomed past ONGC's.
Commenting on the oil and gas major's downfall, SMC Global Securities Strategist & Head of Research Jagannadham Thunuguntla said, "The recent hike in oil subsidy burden on upstream companies from 33 per cent to 38 per cent is definitely making ONGC investors jittery."
"This has resulted in ONGC losing substantial market capitalization of Rs 23,600 crores post the announcement of increase in oil subsidy burden on 17th May, 2011," he added.
IT major Infosys was at the fifth place with a m-cap of Rs 1.65 lakh crore today, followed by ITC at Rs 1.50 lakh crore, State Bank of India (Rs 1.45 lakh crore), NTPC (Rs 1.44 lakh crore), Bharti Airtel (Rs 1.43 lakh crore) and ICICI Bank (Rs 1.20 lakh crore).