Mumbai: Tata Consultancy Services on Tuesday rebounded from its days low, after the IT major was hired by the World Bank to do much of the work that was previously being done by Satyam Computer.
The scrip of the company opened on a bearish note on the Bombay Stock Exchange at Rs504, a dip of 1.51% from its previous closing price. But soon it recovered lost ground and witnessed an intra-day high of Rs527, up nearly 3% from its previous close.
“We have hired Tata Consultancy Services (TCS) to do much of the IT work that Satyam used to do,” a World Bank spokesperson said.
Similar movement was seen on the National Stock Exchange, where the company opened at Rs499.60 a fall of 2.52% from its last close. But then rebounded and touched an intra-day high of Rs528.70, up 3.15% from its previous closing price.
On the volume front, good movement was witnessed as over 4.14 lakh shares exchanged hands on the BSE and nearly 14.56 shares got traded on the NSE.
The IT major had bagged much of the Satyam’s project through competitive bidding early in 2008, thus indicating that the World Bank is not specifically targeting Indian IT companies, as being alleged in certain quarters.
Tthe World Bank on Monday had revealed three Indian IT companies that have been debarred from doing business with it. Besides Satyam, which has been debarred for eight years beginning September 2008, Wipro (beginning June 2007) and Megasoft Technologies (beginning (December 2007) have also been banned for four years each.