TCS Is India’s First Company To Cross Rs 7 Lakh Crore In Market Value

An employee walks past a signage for Tata Consultancy Services Ltd. (TCS) at the company’s Synergy Park campus in Hyderabad (Photographer: Namas Bhojani/Bloomberg)

Tata Consultancy Services Ltd. today became the country's first company to hit the Rs 7 lakh crore market capitalisation milestone. This comes just a month after TCS became the first Indian information technology firm to cross the $100 billion (about Rs 6.7 lakh crore) mark.

TCS shares rose nearly 2 percent to an all-time high of Rs 3,674.8 apiece in early trading. The stock has rallied nearly 14.5 percent since the company touched $100 billion market value, mainly on the back of a weakening rupee. The Indian currency depreciated about 3.2 percent against the dollar in the last one month.

The stock has gained over 35 percent in the year so far compared with an over 19 percent gain in the NSE Nifty IT Index. TCS' Relative Strength Index reading of 71 indicates that the stock may be ‘overbought'. RSI is considered overbought when above 70 and oversold when below 30.

Most brokerages expect TCS to clock a healthy growth in the ongoing financial year. “There is a definite possibility of double-digit revenue growth with robust deal wins and green shoots in the BFSI (banking, financial services and insurance) space,” Edelweiss had said in a note last month.

Earlier this week, Tata Sons' Chairman N Chandrasekaran had told shareholders in the annual report that that “strategic and early investments in digital have positioned it well to benefit from the immense opportunities that lie ahead”.