Illustration showing TCS logo.
Credit: Reuters File Photo
New Delhi, Jul 12 (PTI) Shares of TCS on Friday surged nearly 7 per cent, adding Rs 94,866.26 crore to its market valuation, after the country's largest IT services player reported an 8.7 per cent growth in the June quarter net profit at Rs 12,040 crore.
The massive rally in the IT bellwether stock also took its market valuation to above the Rs 15 lakh crore mark.
The stock jumped 6.68 per cent to settle at Rs 4,184.90 apiece on the BSE. During the day, it surged 7 per cent to Rs 4,199.
On the NSE, it rallied 6.59 per cent to Rs 4,182.45 per share.
The company's market valuation jumped Rs 94,866.26 crore to Rs 15,14,133.45 crore.
The stock emerged as the biggest gainer among the Sensex and Nifty pack.
Meanwhile, other IT stocks, including Infosys, Tech Mahindra, HCL Technologies and Wipro, were also in high demand. Infosys, HCL Technologies and Tech Mahindra rallied over 3 per cent each, while Wipro soared 4.81 per cent on the BSE.
Tracking the rally in IT stock, the BSE Information Technology index ended with a jump of 4.32 per cent at 39,828.91.
Massive buying in IT stocks fuelled a rally in the equity market.
In the broader equity market, the 30-share BSE Sensex jumped 622 points or 0.78 per cent to settle at a new closing high of 80,519.34. During the day, it zoomed 996.17 points or 1.24 per cent to hit an all-time high of 80,893.51.
The NSE Nifty surged 186.20 points or 0.77 per cent to settle at a record closing high of 24,502.15. Intra-day, it jumped 276.25 points or 1.13 per cent to hit a new lifetime peak of 24,592.20.
"Nifty ended strong led by Information Technology stocks after Tata Consultancy Services surprised the street with its Q1 results," Deepak Jasani, Head of Retail Research at HDFC Securities, said.
Tata Consultancy Services (TCS) on Thursday posted an 8.7 per cent year-on-year rise in its consolidated net profit at Rs 12,040 crore for the first quarter ended June 2024.
Net profit for the year-ago period stood at Rs 11,074 crore.
The company - which competes in the IT services market with the likes of Infosys, Wipro and HCLTech - reported a 5.4 per cent increase in revenue at Rs 62,613 crore for the quarter just ended.
"I am pleased to report a strong start to the new fiscal year with all-round growth across industries and markets," K Krithivasan, Chief Executive Officer and Managing Director of TCS, said in a release.
TCS has declared an interim dividend of Rs 10 per equity share of Re 1 each.
"Markets were encouraged by TCS Q1 results, which triggered a massive rally in other IT stocks," Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said.