Mumbai: Tata Consultancy Services Ltd’s (TCS) market cap surged past the 8 trillion mark for the first time today, making it only the second Indian company after Reliance Industries Ltd (RIL) to achieve the milestone. TCS share prices rose 1.86% to a record high of 2093.2 on the BSE today, imparting the IT bellwether a market cap of 8.01 trillion. In intraday, the stock hit an all-time high of 2,100.

Of the 50 brokers tracking the TCS stock on Bloomberg, as many as 22 recommend a “buy" rating, eight “sell" the stock 20 a “hold" rating.

The TCS stock, which has so far this year surged 54.6%, has been rising daily due to a share buyback offer on 6 September. The buyback will closed on 21 September. A weakening rupee has been benefitting the IT stocks, and TCS is no exception.

The 16,000 crore TCS share buyback will see the company purchase 76.19 million of its shares via a tender at 2,100 apiece. This aggregates to up to 1.99% of the paid-up equity capital.

According to a BSE notice, Tata Sons Ltd has expressed interest in participating in the TCS share buyback and may tender up to an aggregate 54.77 million shares, or 1.43% its stake, in the company. Tata Investment Corp. Ltd expressed to sell 20,978 shares, Tata Steel Ltd may tender 947 shares, Tata Industries Ltd 145 shares and Tata Power Co. Ltd 16 shares.

Share buybacks typically improve earnings per share and return surplus cash to shareholders, while supporting the stock price during sluggish market conditions.

For the June quarter, TCS reported 4.1% revenue growth in constant currency terms—highest compared to the preceding eight quarters. Net profit rose 1.1% to $1.08 billion in Q1 from $1.07 billion in the preceding three months, while operating margin narrowed 40 basis points to 25% from 25.4% in the January-March period. One basis point is one-hundredth of a percentage point.

“A portfolio of turnkey services offerings, traction in emerging markets, improving sales and marketing prowess, and willingness to take multiple big bets (different go-to-market models) are among the key drivers that should help TCS sustain its hi-growth trajectory in the long run", said brokerage Edelweiss Securities said in its July report.

The banking, financial services and insurance sector, or BFSI, which contributes 30% of TCS’s revenue, has started growing at a higher pace. The company’s management is confident of double-digit growth in the BFSI segment in the near- to medium-term. The company has strong hiring plans for FY19, despite a lower attrition rate than peers.

“TCS is well-positioned to benefit from the growing demand for offshore IT services. Considering its greater experience than peers in implementing large, complex, and mission-critical projects, the company is a serious contender for large deals", the Edelweiss report added.

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