Mumbai: Driven by smart December quarter earnings, IT major Tata Consultancy Services has become the country’s second largest firm in terms of market valuation, lagging behind corporate leader Reliance Industries.
TCS, which was the top gainer among the country’s 10 most valuable companies in the last week, saw its valuation surging by Rs18,378.11 crore to Rs2,37,330 crore in the week.
State-run ONGC slipped to the third position after its valuation dipped by Rs15,763.47 crore -- the most among top 10 companies -- to Rs2,36,355.83 crore during the week.
Mukesh Ambani-led RIL, the country’s most valuable firm, lost Rs4,794.78 crore in m-cap in the week. Its valuation was Rs3,22,870.6 crore as on Friday last week.
The country’s largest software firm, TCS, last week posted 29.93% growth in consolidated net profit at Rs2,369.83 crore for the October-December quarter.
Boosted by the smart earnings, shares of the company advanced by 8.39% during the week to Rs1,212.60 on the Bombay Stock Exchange as on last Friday.
Analysts said that improvement in operating margins was a pleasant surprise for the market from TCS.
“With the kind of growth TCS has displayed in its quarterly earnings, the company is better positioned than its peers. Becoming the country’s second largest firm is a remarkable achievement. TCS has benefited from the laggardness of ONGC,” SMC Global Securities strategist and head of research Jagannadham Thunuguntla said.
During the period, six firms, including TCS, SBI and ICICI Bank posted gains. The market capitalization of six of these firms grew by Rs38,210.98 crore.
Two of the top lenders, SBI and ICICI Bank, together added Rs12,437 crore to their combined market capitalization. The m-cap of SBI stood at Rs1,64,967.23 crore, while that of ICICI was at Rs1,22,429.93 crore.
IT bellwether Infosys Technologies also added Rs2,686.89 crore to take its valuation to Rs1,86,517.24 crore.
State-run Coal India’s m-cap also swelled by Rs2,400.21 crore to Rs1,98,302.12 crore.
Similarly, NTPC’s market worth too surged by Rs2,308.73 crore to Rs1,56,333.92 crore.
FMCG giant ITC also saw an erosion of Rs910.54 crore from its m-cap which was at Rs1,30,282.41 crore, while telecom player Bharti Airtel’s m-cap eroded by Rs2,316.49 crore to Rs1,27,824.52 crore.