TCS share rises over 2% ahead of Q3 earnings

TCS share rose over 2% in early trade today ahead of the IT firm's  Q3 earnings set to be announced later in the day. Stock of TCS gained 2.16% to Rs 3098.35 against previous close of Rs 3,032.70 on BSE.

The stock has gained after 2 days of consecutive fall. Market cap of the firm rose to Rs 11.56 lakh crore on BSE. TCS share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Total 58,461 shares of the IT gaint changed hands on BSE.

The IT stock has risen 36.63% in one year and gained 7.35% since the beginning of this year.

TCS is likely to report QoQ growth of 4.5% in Q3 in USD terms, according to Edelweiss.

The report by Edelweiss Research further said Indian IT companies are poised to report their best Q3 in a decade on the back of highest-ever order books, marked revenue acceleration, margin expansion, and ongoing outlook upgrades.   

Another IT major Infosys  is scheduled to release Q3 results on January 13.

Infosys, TCS, Wipro to shine! IT companies look forward to best Q3 in a decade

"Generally, Q3 is a slack quarter for IT companies. But this time around, investors are expecting the best quarterly performance from TCS along with other companies like Infosys, HCL & Wipro with dollar revenue growth of over 3% as against 1%. Technically, if earnings still are as estimated, we believe it has been factored in the stock price. Investors are advised to book profits on every rise, " said AR Ramachandran, Co-founder & Trainer at Tips2trades.

In Q2 of the current fiscal, TCS reported a 4.9 per cent rise in consolidated net profit to Rs 8,433 crore and announced up to Rs 16,000-crore buyback plan.

Net profit excluded Rs 1,218 crore-provision towards legal claim. Including this number, the net profit was at Rs 7,475 crore, TCS said. TCS had registered a net profit of Rs 8,042 crore in the September 2019 quarter. Its revenue grew 3 per cent year-on-year to Rs 40,135 crore for the just-ended quarter from Rs 38,977 crore in the year-ago period.

Sensex rises 300 points, Nifty at 14,150; Infosys, TCS, HCL Tech top gainers