TCS Shares Soar, Market Valuation Skyrockets

Shares of TCS surged nearly 7% on Friday, adding Rs 94,866.26 crore to its market valuation after reporting an 8.7% growth in net profit for Q1 FY2024. The rally boosted the BSE Information Technology index and saw other IT stocks, including Infosys, HCL Technologies, and Tech Mahindra, gain significantly.

Shares of TCS on Friday surged nearly 7 percent, adding Rs 94,866.26 crore to its market valuation, after the country's largest IT player reported an 8.7 percent growth in the June quarter net profit at Rs 12,040 crore.

The massive rally in the IT heavy-weight stock also pushed its market valuation above the Rs 15 lakh crore mark. The stock climbed 6.68 percent to settle at Rs 4,184.90 apiece on the BSE, and during intraday trade, it surged 7 percent to Rs 4,199.

On the NSE, TCS rallied 6.59 percent to Rs 4,182.45 per share. Meanwhile, other IT stocks, including Infosys, Tech Mahindra, HCL Technologies, and Wipro, were also in high demand, with Infosys, HCL Technologies, and Tech Mahindra each rallying over 3 percent, while Wipro soared 4.81 percent on the BSE. The BSE Information Technology index ended with a jump of 4.32 percent, closing at 39,828.91.

The broader equity market also witnessed a boost, with the 30-share BSE Sensex jumping 622 points or 0.78 percent to settle at a new closing high of 80,519.34. The NSE Nifty surged 186.20 points or 0.77 percent to settle at a record closing high of 24,502.15. Deepak Jasani, Head of Retail Research at HDFC Securities, mentioned that the Nifty ended strong led by Information Technology stocks after Tata Consultancy Services surprised the market with its Q1 results. K Krithivasan, Chief Executive Officer and Managing Director of TCS, expressed pleasure in the company's strong start to the new fiscal year with all-round growth across industries and markets. TCS has declared an interim dividend of Rs 10 per equity share of Re 1 each.

(With inputs from agencies.)