Shares of Tata Consultancy Services (TCS) settled for the day with gains of nearly 5.5 per cent on Friday, following which the market cap of the company rallied by Rs 34,222 crore after the company reported a marginal decline in March quarter earnings.
Market analysts said TCS outlined a balanced business outlook and investors are anticipating a recovery in demand conditions by the third quarter of the current financial year.
On BSE, the scrip of the company closed 5.32 per cent higher at Rs 1,806.80 after advancing 7.94 per cent to Rs 1,851.85 during the day.
At the NSE, it rose by 5.47 per cent to close at Rs 1,810. During the day it climbed 7.91 per cent to touch an intra-day high of Rs 1,851.95.
Led by the rally in the scrip, the market valuation of the company jumped by Rs 34,221.87 crore to reach Rs 6,77,980.87 crore on the BSE.
In traded volume terms, 3 lakh shares were traded at the BSE and about 98 lakh shares on the NSE during the day.
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TCS on Thursday reported a marginal dip in March quarter net at Rs 8,049 crore. The company had posted a net profit of Rs 8,126 crore in the year-ago period.
"In contrast to the cautious commentary from Wipro, TCS outlined a more balanced business outlook with hopes for a demand recovery by 3Q FY21," according to a report by JM Financial Institutional Securities Limited.
It further added that "while the near-term challenges are likely to be significant and broad-based across verticals TCS admitted to a potential QoQ decline in 1QFY21 similar to post the 2008 global financial crisis its scale should help gain market share over the medium term."