Tata Consultancy Services (TCS) on Monday became the second Indian IT Indian firm after Reliance Industries to scale a market cap of more than Rs 10 lakh crore. TCS share closed 7.30% higher at Rs 2706 against previous close of Rs 2,522 on BSE.
Market cap of TCS at the time of close stood at Rs 10.15 lakh crore.
Reliance Industries Limited was the first Indian firm to have crossed the Rs 10 lakh crore market valuation mark. Its market valuation currently stands at Rs 14.95 lakh crore - the highest for any listed company in the country.
Earlier in the day, TCS share hit a fresh all-time high after the firm said its board would consider a share buyback in meeting to be held on October 7. Share of TCS gained 8.1% to Rs 2,727. The IT stock has gained 16.1% in the last six days. The stock opened with a gain of 3.46% at Rs 2,610 on BSE. TCS share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Tata vs Mistry: Shapoorji Pallonji Group may agree to staggered payments from Tata GroupMarket cap of the firm rose at Rs 9.96 lakh crore on BSE. TCS share has gained 30.22% in one year and 25.22% since the beginning of this year. In one month, the share has risen 18.22%. Total 4.73 lakh shares of TCS changed hands amounting to turnover of Rs 126.54 crore on BSE. The stock hit 52-week low of Rs 1,504 on March 13 this year.
TCS will consider a buyback of shares on October 7, when the company board meets for the second quarter results, India's largest IT services company said on Sunday.
The firm is the first technology company to announce buyback of its shares in the current fiscal. TCS had cash reserves of Rs 73,993 crore in March 2020. The company also said in another filing that it would provide Rs 1,218 crore as an exceptional item in the upcoming earnings in relation to the EPIC Systems Corporation case TCS. The case relates to allegations of intellectual property theft against TCS is ongoing.
However, TCS has made the provision following a warning by SEBI earlier this year. "The provision in the books for legal claim is being made as a matter of prudence," the company said in its filing.TCS share rises over 3% as Walmart may invest $25 billion in Tata Group's app