TCS Share Price Crossed Rs 3,000 For The First Time

On Monday, the share price of Tata Consultancy Services (TCS) hit a new all-time high of Rs 3,050.75, crossing the Rs 3,000 mark for the first time ever.

The new high comes ahead of the IT giant's scheduled announcement of its third-quarter results on 8 January.

The stock gained over 3% during the day and was among the top gainers on Sensex as well as Nifty 50. The market cap of the second most valued company in India now stands above Rs 11.40 lakh crore.

In comparison, the market cap of Reliance Industries Limited (the most valued company in terms of market capitalisation) stood at Rs 13.09 lakh crore at the end of 4 January.

Most IT services stocks performed well on Monday, in anticipation of positive Q3 results. Infosys and HCL Tech also hit their respective all-time highs during the day.

Prabhudas Lilladher expects a modest 77 basis points decline in margins to 25.4% on account of wage hike from 1 October 2020. With there being no other increasing cost item, it expects a positive surprise in margins.

It also expects consensus to revise their revenue growth estimates, as deal wins across the pack are very strong and European geography will outperform in coming quarters.

TCS will post a strong deal win number due to Deutsche and Prudential Financial deal wins, it added.