India’s largest information technology (IT) services provider Tata Consultancy Services (TCS) has overtaken Oil and Natural Gas Corporation (ONGC) as the third most-valued company in terms of market capitalisation. According to National Stock Exchange (NSE) data, TCS market cap stood at Rs 2,31,223.6 crore — marginally higher than ONGC’s Rs 2,31,040.7 crore.
On the Bombay Stock Exchange (BSE), the difference between ONGC and TCS market cap was 0.26 per cent. ONGC managed to retain its third position on the BSE with a total market cap of Rs 2,31,040.70 crore to TCS’s Rs 2,30,428.98 crore.
This is the second time in one month that ONGC has lost its position to another company in terms of market capitalisation. About a month back, Coal India had crossed ONGC in terms of market capitalistion. “The oil subsidy burden is taking its toll on ONGC. The recent hike in the oil subsidy burden on upstream companies, from 33 per cent to 38 per cent, is definitely making ONGC investors jittery. This has resulted in ONGC losing market capitalisation of Rs 23,600 crore post the announcement on May 17,” said Jagannadham Thunuguntla Strategist & Head of Research, SMC Global Securities.
“TCS is the new poster boy of the Indian IT services. They have not only gone ahead of Infosys but have also managed to show a stable growth trajectory with a stable management,” said an analyst on the condition of anonymity. Analysts also believe that Coal India is slowly inching towards becoming the most-valued company in India.