Mumbai: Tata Consultancy Services (TCS), India\’s second most valuable company, soared as much as 7% in Friday\’s trading as the firm\’s better-than-expected first-quarter earnings sparked a relief rally in the stock and its peers.
Analysts see room for a further 4% run-up in the stock, which closed at 4,182 on Friday, up 6.7% from its previous close.
\”There was a significant bearishness in the IT sector among investors before the results with expectations of deteriorating outlook,\” said Kumar Rakesh, analyst – IT & auto, BNP Paribas. \”Given the level of bearishness, investors have taken slightly better results and positive outlook as materially positive.\”
Kumar said that the market has started pricing in the US Federal Reserve slashing rates in September, which would lead to trigger pent-up demand in IT and accelerate growth.
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