After Reliance Industries, Tata Consultancy Services (commonly known as TCS) becomes the 2nd Indian firm to cross the Rs 10 lakh Crores market cap. After a huge rally in the stock market from March 2020, the company’s share rose by around 50%. This rise came after the dip that COVID brought during the lockdown. The company’s share prices even made new 52-week highs and are trading now slightly below that.
About Tata Consultancy Services
TCS is a multinational IT firm with its headquarters in Mumbai. It was even ranked 64th by Forbes in 2015, as the world’s most innovative companies ranking. The company provides a lot of services like cognitive business operations, consulting, blockchain, IoT, Enterprise Applications and more. By providing the best quality services, TCS has become the 2nd largest company in India (market cap wise).
Details on the share market
On the 5th of October, the share prices had a good gap-up opening and continue to rise until the end of the trading session. It jumped by around 6% before the board meeting and made new highs on BSE and NSE by the end of the day. After the bullish rally, the market evaluation of the company touched Rs 10,03,012.43 crores in BSE.
Last month the company became the 2nd Indian firm after Reliance to cross the Rs 9 lakh crores market cap. The company is a 2nd to the largest business in India Reliance Industries with a market cap of Rs 15 lakh crores. TCS board of directors will consider a proposal for the buyback for equity shares in the meeting on 7th October.
It is also going to take into account the financial statements of September and release dividends for its shareholders. The company says that the buyback is a way to return excess cash to its shareholders. All in all, this is a great move by TCS and can be taken into account by other IT companies too.
Giving rewards like dividends and cash to one’s long term shareholders is an excellent way to increase goodwill in the market. This will also ensure that long term investors stock to the company’s shares and don’t look to make a profit elsewhere.
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