Good news incoming for Indian Commerce! Eight out of the 10 most valued companies have added yet another success story. Key-note account, to be extolled about is the addition of a whopping Rs 66,625.6 crore as an aggregated market cap last week.
Reportedly, IT major Tata Consultancy Services (TCS) emerged as the biggest gainer. Along with TCS retaining its top-flight position, RIL (Reliance Industries Limited), HDFC Bank, HUL, ITC, HDFC, Maruti, Infosys, Kotak Mahindra Bank and SBI trail it, during the weekend.
Last week, the Sensex saw a rise to 234.38 points, accounted to be 0.66 per cent.
Top Companies In India by Market Cap
The market valuation of Tata Consultancy Services (TCS) soared by Rs 25,306.88 crore to reach Rs 7,32,521.29 crore. To add up to the profit-book, one may take off the hat to Maruti Suzuki’s valuation, which surged up from Rs 14,608.59 crore to Rs 2,81,079.45 crore and that of Hindustan Unilever Ltd (HUL) jumped Rs 8,030.79 crore to Rs 3,63,431.19 crore.
The market cap of ITC advanced by Rs 7,627.68 crore to reach Rs 3,32,322.95 crore and that of Kotak Mahindra Bank witnessed a rise from Rs 5,510.83 crore to Rs 2,61,263.97 crore.
RIL’s and HDFC saw a significant upsurge to reach Rs 6,18,749.36 crore Rs 3,22,542.15 crore respectively. In addition to this, HDFC Bank also went up by Rs 1,562.49 crore to Rs 5,50,531.99 crore.
However, on a close contrary two out of the ten companies saw a decline. Infosys witnessed a downfall of Rs 4,859.69 crore at Rs 2,80,551.12 crore, while SBI too incurred a loss of Rs 1,651.04 crore to Rs 2,29,763.51 crore.
TCS Emerges As A Leader!
Tata Consultancy Services Ltd. is perhaps, basking in the afterglow of emerging as the top-honcho in the market! Interestingly, TCS recently became the first Indian company to breach the market cap of $100 Billion.
But this success-saga, vividly complying with its story, is no chance occurrence.
TCS strengths lie in its extensive knowledge of customer’s IT systems. TCS offers a full-fledged suite of services and above all, complies with GDPR.
To juxtapose TCS and other companies, one may point out leadership changes. However, eagle-eyed analysts can draw conclusions that TCS is one head-of-the-line and has not seen much disruptions like other companies say, for instance, Infosys, have witnessed over the past years.
If this wasn’t enough to give it a green-go-go signal, TCS moves faster than its Indian incumbents into digital services.
Infosys; Going Against The Flow!
During the last eight years, Infosys stood witness to three CEOs coming and resigning—and, two out of the three times, these exits were completely uncalled for. Reportedly, S.D Shibulal retired from Infosys due to non-performance and Sikka left following differences with the co-founders. However, now that Infosys has a new CEO trying to steer clear, the gap between the Infosys and its incumbents has widened. As a matter of fact, the gap of eight years is here to stay for a while. Considering the under-performance of Infosys, following the ugly spat between co-founders, it will need to put out the fire before becoming attractive to investors.
It was the first time in the 33-years history of Infosys when the It services behemoth recorded negative growth in employee hiring in 2016.
As the Indian IT sector moves into its next phase of growth, it needs to get better at making acquisitions. Digital is one area where most companies are placing big bets. While the transformation setting in technology is now slowly turning into an enabler rather than riding pinion as a cost factor, technology is not just a cost-centric stuff, but a profit-centric in many companies.
An industry that is is untapped, world-class at the global scale can surely rejoice at the current upheaval, but must keep its steering wheel steady.