TCS jumps up on MSCI induction

DALAL STREET SPIKES

Tata Consultancy Services (TCS) was in the limelight on Wednesday on reports that Morgan Stanley Capital International (MSCI), which compiles the series on market indices, will add TCS to the MSCI India and MSCI Asia-Pacific indices.

The stock was up 1.18 per cent to close at Rs 1,204.25. More than 2.3 lakh shares were traded at the counter on the Bombay Stock Exchange. MSCI said the addition follows its latest quarterly and semi-annual review of stocks in the indices, and the addition of TCS takes effect from November 30.

Market analysts said the stock has steadily gained momentum in the past few weeks, thanks to the re-rating of the entire IT sector and strong quarterly performance.

TCS' addition to the MSCI will force foreign funds to add the stock into their portfolio going forward.

MSCI said five stocks from the Asia-Pacific region had been added to its Standard Index Series but no securities have been removed from the region.