Friday, December 30, 2011

TCS pips Reliance to become largest company by m-cap


TCS' m-cap stood at Rs 227,282.29 crore against RIL's m-cap of 226,898.64 crore at the end of trade on the Bombay Stock Exchange today. TCS closed 0.35 per cent lower but Reliance saw a shaper fall. The stock slumped 2.81 per cent to close below the 700 mark for the first time since 13 April 2007.
India's biggest software services firm Tata Consultancy Services has pipped Reliance Industries to become the largest company by market capitalisation on the last day of trading in 2011. Market capitalisation is the total worth of a company in terms of its shares and is equal to the share price multiplied by the total number of shares.

Reliance Industries lost its position as the country's most valued company to Tata group firm TCS this afternoon, as the shares of billionaire Mukesh Ambani-led corporate giant fell sharply in a weak market.

"The past three years have been quite stunning for Reliance Industries. Except the joint venture with British Petroleum, there were not many good news for the group. The challenges in KG-D6 Gas basin in terms of lower gas rampage surely proved to be a drag on the company and stock," Jagannadham Thunuguntla, Strategist & Head of Research at SMC Global Securities Limited said.

TCS' m-cap stood at Rs 227,282.29 crore against RIL's m-cap of 226,898.64 crore at the end of trade on the Bombay Stock Exchange today. TCS closed 0.35 per cent lower but Reliance saw a shaper fall. The stock slumped 2.81 per cent to close below the 700 mark for the first time since 13 April 2007.

"All the new businesses the company has attempted such as retail have proved to be facing much longer gestation period and may not have any meaningful impact in the short term. The telecom bet that company has been attempting may also prove to be long-gestation venture," Thunuguntla added.

RIL has been the country's most valued company for many years, except for a brief period in August this year, when it first lost its top slot to Coal India Ltd. It regained the top sport later but was again overtaken by another state-run firm ONGC.

Earlier this month, RIL also lost its tag of the country's most influential stock to another IT firm Infosys, as measured by their weightage on the stock market barometer Sensex. RIL first slipped below Infosys in terms of Sensex weightage on December 12, and thereafter, a situation similar to game of musical chairs has been on display between the two, as they have overtaken each other on various occasions.

Currently, Infosys commands a higher weight than RIL.

ONGC is currently ranked third with a market cap of Rs 2,19,833.32 crore, while CIL is fourth at Rs 1,90,027.81 crore.