On Friday, TCS dislodged Infosys Infosys to become the tech company with highest market cap. The results of the first quarter have boosted the sentiment in the market to a large extent and the top exporter of software surged by
6% on Friday overtaking Infosys Technologies, its main rival in the ranking for market capitalization. The market capitalization of TCS rose to 162,917crore rupees making it the number 4 company in terms of value behind Reliance Industries, ONGC and NTPC. The valuation of Infosys on the other hand was 159,446 placing it in the 5th position. The market cap of Reliance is 347,000crore rupees, while it is 268,534crore rupees for ONGC and
163,466crore rupees for NTPC.

The surge of TCS shares on BSE was largely due to the 24% rise during the period between April and June with a net profit in the quarter of 1906 crore rupees. The closing price of the counter was 832,40, the highest amongst all Sensex stocks. Other IT stocks posted rise too thanks to TCS. According to Pawan Dharnidharka, a BSE dealer, Infosys was ahead in the market capitalization race, although TCS was the largest company in the IT sector. However, the numbers game has now been changed by the performance of TCS in the first quarter.

According to a IIFL Institutional Equities’ analyst, the growth in TCS was broad based which means that every industry segment and geography registered a quarter on quarter growth. The environment of pricing is still stable and the realizations are expected to increase further by 2HFY11. The management also highlighted the fact that the number of discretionary projects in the deal pipeline are increasing too. Earlier in the week, investors were disappointed by a 2.4 % fall in the net profit which was 1488crore rupees in the period between April to June even though revenues rose to 6198crore rupees which was an increase of 13.3%.