After shares of Tata Consultancy Limited (TCS) surged 7 percent in trade on Monday, the company become the only company besides Reliance Industries to surpass the market cap of Rs 10 lakh crore.
The stock hit a new high of Rs 2,687 during the day causing its market capitalisation to hit Rs 10.08 lakh crore. The surge comes after the company announced that it is considering a buyback of shares on 7 October.
No other details of the buyback plan were disclosed.
The TCS board is also slated to consider its financial results for the September quarter and declaration of a second interim dividend to the equity shareholders at that meeting.
The IT services company is the second most valued company in the Indian market after RIL, which has a market cap of over Rs 15 lakh crore.
TCS had undertaken a share buyback programme worth up to Rs 16,000 crore in 2018. There was a similar share purchase programme in 2017.
It is the first among cash-rich tech companies to announce a share buyback this financial year.
Most IT stocks are surging ahead of their Q2 earnings results season, which begins this week. These companies are expected to have performed well amid the pandemic due to increased focus of digitalisation amid businesses.
Bengaluru based Infosys also hit a new high of Rs 1,054.90 on Monday.