TCS Shares Fall After Five Large Trades, Drags Nifty, IT Index
Promoter Tata Sons Pvt. is looking to divest a 0.65% stake in the company.
Shares of Tata Consultancy Services Ltd. fell over 3% on Tuesday after 2.02 crore shares changed hands in five large trades.
The buyers and sellers were not known immediately, according to Bloomberg.
Promoter Tata Sons Pvt. is looking to divest a 0.65% stake in the company, people aware of the matter had told NDTV Profit.
It is looking to sell 2.34 crore shares at a likely price of Rs 4,001 apiece. Through this offer for sale, Tata Sons will raise Rs 9,362 crore or $1.13 billion, which the company is expected to spend on reducing debt.
On the NSE, the stock fell as much as 3.14% during the day to Rs 4,022 apiece, the lowest since Feb. 27. It was trading 2.95% lower at Rs 4,029.90 per share, compared to a 0.38% decline in the benchmark Nifty 50 as of 09:23 a.m.
The share price has risen 32.11% in the last 12 months. The total traded volume so far in the day stood at 1.71 times its 30-day average. The relative strength index was at 45.
Out of 46 analysts tracking the company, 26 have a 'buy' rating on the stock, 10 recommend 'hold,' and as many suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 2.5%.
The benchmark Nifty 50 was trading 0.83% lower at 21,871.60 at 10:06 a.m. as the IT bellwether dragged.
The Nifty IT fell over 1% to the lowest level since March 6 as losses in TCS shares weighed on the index.
