TCS Share Price Surges on Buyback Proposal

TCS Share Price Surges on Buyback Proposal

VoM News Desk | October 9, 2023 | 01:12 PM IST | Breaking News | Follow on Google News

TCS Share Price Surges on Buyback Proposal

TCS Share Price Surges on Buyback Proposal: TCS Shares Hit 52-Week High on Buyback Announcement

Tata Consultancy Services (TCS) witnessed a surge in buying interest on Monday following the announcement of a proposal for a share buyback during the board meeting scheduled for October 11, 2023. TCS’s share price opened positively and reached an intraday high of ₹3,679 per share on the NSE, marking a new 52-week high.

Market experts attribute this rally in TCS shares to the recent exchange filing made by the Indian IT giant. In the filing, TCS informed the Dalal Street bourses that its board of directors would consider and approve a share buyback during the meeting on October 11, 2023. Analysts suggest that TCS’s share price is displaying a bullish chart pattern and may potentially reach levels around ₹3,800 per share in the near term.

Avinash Gorakshkar, Head of Research at Profitmart Securities, stated, “TCS’s share price is rising due to the announcement of a share buyback. Although the buyback price has not been announced yet, the market expects it to be in the range of ₹4,300 to ₹4,500 per share, with an estimated buyback size of ₹18,000 crore.”

Q2 Results to Determine Long-Term Movement

Gorakshkar also emphasized that the medium to long-term movement of TCS shares would depend on the Q2 results that TCS will announce on October 11, 2023. Nevertheless, he maintained that the stock may experience further upside in the near term.

Sumeet Bagadia, Executive Director at Choice Broking, analyzed the chart structure of TCS shares and commented, “TCS shares exhibit a bullish chart pattern and may potentially reach ₹3,750 to ₹3,800 per share in the near term. Investors holding TCS shares in their portfolios are advised to set a stop loss at ₹3,550 and hold for these targets. New investors can also consider buying TCS shares at current levels, maintaining a stop loss at ₹3,550 per share.”

TCS’s Official Buyback Announcement

TCS had officially informed Indian stock market exchanges about the share buyback, stating, “Pursuant to Regulation 29(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Board of Directors will consider a proposal for the buyback of equity shares of the Company, at its meeting to be held on October 11, 2023.”

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.