Country's top software exporter TCS on Friday toppled its main rival Infosys Technologies as the most valued IT company in the country.
Shares of Tata Consultancy Services (TCS) rallied over 6 per cent on the Bombay Stock Exchange, taking its market capitalisation to Rs 1.62 lakh crore, higher by Rs 3,470 crore than Infosys' Rs 1.59 lakh crore valuation.
The Tata Group company TCS is now the fourth most valued company in the country. Billionaire Mukesh Ambani-led Reliance Industries is the most valued firm with market valuation of Rs 3.47 lakh crore as of today, followed by state-run ONGC and NTPC in that order. Infosys is at the fifth place in the top group.
TCS's over 24 per cent rise in April-June quarter profit at Rs 1,906 crore saw it shares surging on BSE. The counter closed up by a whopping 6.16 per cent, the highest among Sensex stocks.
"TCS results were above the street and our expectations. The company has positively surprised us by reporting a strong 6.4 per cent sequential growth in dollar-term revenue," said domestic brokerage firm Sharekhan.
The jump in TCS was infectious and other IT stocks, too, posted smart gains, pushing the BSE IT index about 100 points higher to 5,459. Infosys rose 0.70 per cent and Wipro 0.06 per cent.
"Strong results of TCS are proof of demand momentum for Indian techs and should soothe concerns after the street's disappointment with Infosys performance on account of heightened expectations," Emkay Global Financial Services said in a note.
The improved sentiment helped the Bombay Stock Exchange 30-share index close at 17,955.82, up 46.36 points, or 0.26 per cent.