Tata group’s IT firm TCS today attained a market valuation of Rs 4 lakh crore — becoming the second company in Indian markets after Reliance Industries to cross this milestone.
At present, TCS is the only company with a market value of over Rs 4 lakh crore as Reliance Industries had slipped below this below level.
At the end of today’s trade, the market capitalisation of Tata Consultancy Services (TCS) surged to Rs 4,00,868.22 crore, the highest for the company since its listing in 2004.
TCS is already the country’s most valued company, a position once held by Mukesh Ambani-led RIL, which also had seen its market cap cross the Rs 4 trillion mark in October 2007.
However, RIL’s share price performance has lagged in the past couple of months and the company’s market cap currently stands at over Rs 2.85 lakh crore — giving TCS a lead by more than Rs one lakh crore.
TCS shares rose by 1.24 per cent to close at Rs 2,048.15 at the BSE today. In intra-day trade, the scrip touched its all-time high of Rs 2,065.45.
In US dollar terms, TCS’s market cap has risen to over $60 billion. The rupee today closed at 66 against the US dollar, down 30 paise or 0.45 per cent.
Shares of TCS has risen over 62 per cent so far this year, although the benchmark Sensex has fallen by 3.54 per cent during the same period.
The Indian currency has fallen by over 21 per cent so far this year.
Fall in the rupee versus the US currency is broadly seen as positive for export-focussed sectors like the Indian IT space.
Large IT companies benefit from a weaker rupee, as it positively impacts their profit margins as these firms earn a major chunk of their revenues in dollar from their US clients.