TCS share rose over 2% in early trade today ahead of the IT firm's Q3 earnings set to be announced later in the day. Stock of TCS gained 2.16% to Rs 3098.35 against previous close of Rs 3,032.70 on BSE.
The stock has gained after 2 days of consecutive fall. Market cap of the firm rose to Rs 11.56 lakh crore on BSE. TCS share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Total 58,461 shares of the IT gaint changed hands on BSE.
The IT stock has risen 36.63% in one year and gained 7.35% since the beginning of this year.
TCS is likely to report QoQ growth of 4.5% in Q3 in USD terms, according to Edelweiss.
The report by Edelweiss Research further said Indian IT companies are poised to report their best Q3 in a decade on the back of highest-ever order books, marked revenue acceleration, margin expansion, and ongoing outlook upgrades.
Another IT major Infosys is scheduled to release Q3 results on January 13.
"Generally, Q3 is a slack quarter for IT companies. But this time around, investors are expecting the best quarterly performance from TCS along with other companies like Infosys, HCL & Wipro with dollar revenue growth of over 3% as against 1%. Technically, if earnings still are as estimated, we believe it has been factored in the stock price. Investors are advised to book profits on every rise, " said AR Ramachandran, Co-founder & Trainer at Tips2trades.
In Q2 of the current fiscal, TCS reported a 4.9 per cent rise in consolidated net profit to Rs 8,433 crore and announced up to Rs 16,000-crore buyback plan.
Net profit excluded Rs 1,218 crore-provision towards legal claim. Including this number, the net profit was at Rs 7,475 crore, TCS said. TCS had registered a net profit of Rs 8,042 crore in the September 2019 quarter. Its revenue grew 3 per cent year-on-year to Rs 40,135 crore for the just-ended quarter from Rs 38,977 crore in the year-ago period.