TCS overtakes RIL in market capitalization
Tata Consultancy Services (TCS) on Friday surpassed Reliance Industries Ltd to become India’s largest company by market capitalization.
On the last trading day of 2011, TCS’ market capitalization stood at Rs 2.27-lakh crore, while market value of RIL slipped to Rs 2.26-lakh crore as shares in RIL fell a 52-week low.
Shares in RIL on Friday slipped to Rs 689. However, shares later recovered to close at Rs 693.10, but the figure was still down by 2.6 per cent from previous day trading.
It may be noted here that RIL shares have never traded below Rs 700 since March 2009.
Over the last more than 11 years, it was the first time when a Tata Group company overthrown RIL in the market capitalization. RIL has snatched the top ranking from Tata Group in April 2000.
But, TCS gained the top position not because of its strength, but because of Reliance’s weakness.
IDBI Federal Life Insurance’s chief investment officer Aneesh Srivastava said, “Today's event has more to do with Reliance Industries' weakness because of weak earnings expectations in the third quarter rather than TCS' strength.”
Investors are worried over the Reliance’s troubles in gas production and declining margins in refining business.
