IT major Tata Consultancy Services became the second Indian company after Reliance Industries to cross market capitalisation of Rs 9 lakh crore on Monday. The shares of the Mumbai-based IT major were up over 3%, hitting a new 52-week high of Rs 2,447.95.
At the time of writing, TCS was trading 3.04% up (72.15 points higher) at Rs 2,446.25 and its market capitalisation stood at Rs 9,17,870.82 crore.
As per reports, despite the stock of TCS underperforming the market, it outperformed the BSE Sensex in the past week. TCS’ stock rose 4% last week, compared to BSE, which only rose around 1.7%.
Market capitalisation is the value of a publicly traded company and is calculated by multiplying the total number of shares by the current share price.
This also comes days after the shares of Reliance Industries rallied to a new high on Thursday to hit a market capitalization of Rs 14.63 lakh crore. This made it the first Indian company to hit a market capitalization of $200 billion.
Not just TCS, other IT stocks too rallied on Monday. HCL Technologies was up 10%, after the company revised its guidance upwards and said that it expects revenue and operating margin for Q2 (July-September) to be better than the guidance it gave during Q1 results.
At the time of writing, HCL was up 10% on the Bombay Stock Exchange at Rs 793.15, and up 9.69% on the Nifty (National Stock Exchange) at Rs 791.60.
“We have seen strong execution during the quarter to date and continue to execute to the plan this month. The Revenue growth for the current quarter is expected to exceed 3.5% quarter on quarter in constant currency, enabled by broad based momentum across all service lines, verticals and geographies. The EBIT% for the current quarter is expected to be between 20.5% and 21.0%. Good Booking momentum continues this quarter, led by Life Sciences & Healthcare, Telecom & Media and Financial Services verticals. The pipeline continues to look healthy across service lines, verticals and geographies,” HCL said in a statement.
Stocks of Wipro, Infosys and L&T Infotech, and Mindtree too, hit 52-week highs. Wipro was up over 3%, hitting a high of Rs 304.8. Infosys was up over 4% and hit a 52-week high of Rs 989. L&T Infotech also was up 4% and hit a high of Rs 2,603.80, while Mindtree, which was up nearly 4%, hit a 52-week high of Rs 1,236.
Infosys shares surged after it announced that it will acquire Guidevision for up to 30 million euros.
“GuideVision is an award winning enterprise service management consultancy specialised in offering strategic advisory, consulting, implementations, training and support on the ServiceNow platform… GuideVision’s training academy and nearshore capabilities in Czech Republic, Hungary, Poland, and presence in Germany and Finland will strengthen Infosys’ ServiceNow capabilities for its clients in Europe,” Infosys said in a statement.
Tech Mahindra too, was trading 4% up at Rs 795.
Other IT stocks such as Persistent Systems, Datamatics Global Services, Birlasoft, Mphasis, Firstsource Solutions, NIIT, Mastek, Ramco Systems and Quick Heal Technologies were up between 5-11%.