TCS Stocks At 52-Week High: 2nd Indian Firm To Cross Rs 11 Lakh Cr Valuation After Reliance!
Share prices of India’s biggest IT Services company: TCS has now touched a 52-week high.
This has enabled TCS to breach Rs 11 lakh crore market capital, thereby becoming the only 2nd company after Reliance to achieve this feat.
What exactly is happening with TCS here?
TCS Becomes Rs 11 Lakh Crore Company
On Monday, TCS share prices hit a record high of Rs 2948 per share, which is their highest price in the last 52 weeks.
At the time of writing (Dec 30, 11AM), the share prices of TCS were trading at Rs 2935.
Since investors are bullish on TCS, the stock prices zoomed up, which enabled TCS to breach Rs 11 lakh crore market cap.
Only Reliance has higher market cap than TCS right now.
Why TCS Shares Are Surging?
The economic stimulus approved by US Govt to kickstart their economy is seen as the primary reason why TCS shares prices are surging currently.
A stronger US economy means more US clients and more outsourcing work from the US for Indian IT companies, and this means a stronger TCS as a company.
Binod Modi, Head-Strategy at Reliance Securities said “Stimulus bill in the US continued to offer support to emerging markets including India. However, emerging risk pertaining to new coronavirus strain made investors focus back on defensive sectors including IT, Pharma and FMCG,”
This year, TCS shares have surged by record 36%, and investors are continuing to buy their shares.
On Wednesday, BSE Sensex jumped by 437 points, share prices of Infosys, HUL and TCS continue to rise.
The sensitive 30-share BSE Sensex has already breached the 46,444.18 mark, even as NSE Nifty surged by 138 points, which is 1% of the market, as it closed at 13,601.10 on Wednesday.
Stock analysts are pretty bullish on TCS, along with other IT firms, whose business is mainly dependent on the US market.
We will keep you updated, as more details come in.