Why is there a rally in TCS share prices?

The rally in the stock came after TCS said that it has won a multi-year deal from Europ Assistance- a global assistance and travel insurance company, The deal will focus on a global IT operating model although the financials were not disclosed by the IT firm. TCS will step up its delivery centers in Europe and across geographies to provide Europ Assistance end-to-end enterprise IT application services and will also leverage its proprietary solution, ignio AIOps from its Digitate suite of offerings to enhance operational resilience and business agility.

The focus will be on co-innovation and working together on leveraging generative AI and other advanced technologies, the company has said.

What’s happening in the stock market?

At 10.02 am, the stock was trading 3.6% higher at ₹4,114.6 on BSE. At the same time, the firm’s market cap stood at ₹15,06,376 crore. In Q3 FY24, TCS reported higher-than-expected revenue- a 2% year-on-year (YoY) growth in consolidated net profit for the quarter to ₹11,058 crore. The revenue of TCS increased by 4% to ₹60,583 crore while the profit dropped by 2.5%.