Shares of Tata Consultancy Services (TCS) jumped nearly 8 per cent on Friday 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.
The scrip of the company advanced 7.94 per cent to Rs 1,851.85 on the BSE. It was the top gainer on the 30-share BSE index.
At the NSE, it climbed 7.91 per cent to Rs 1,851.95.
TCS on Thursday reported a marginal dip in March quarter net at Rs 8,049 crore on Thursday, but guided towards a very difficult time ahead which may even see a "contraction" in revenues in the first two quarters of FY21, as global clients fight the impact of the COVID-19 pandemic.
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."
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