TCS nears all-time high; stock rallies 11% in four days

Shares of Tata Consultancy Services (TCS) have moved 3.2% higher to Rs 3,238 per share, extending their 7.4% rally in past three trading days on the Market. The information technology (IT) giant trading close to its all-time high of Rs 3,255, recorded on January 24, 2018 in intra-day trade.
TCS is scheduled to announce its earnings for the period of January-March 2018 (Q4FY18) and the financial year 2017-2018 (FY18) on Thursday, April 19, 2018.

TCS, in its December quarter (Q3FY18) call, sounded optimistic about 2018, stating that problems that were plaguing a number of its verticals and geographies are behind it. The optimism also stemmed from the general improvement in macro-economic outlook in the developed world, especially in the US.

“We have factored in 1.5% quarter on quarter (QoQ) CC (constant currency) revenue growth considering that Q4 tends to be a seasonally weak quarter. All major currencies including the Euro, UK Pound, JPY, AUD, BRL and AUD have appreciated against USD in Q4FY18, which we believe, will lead to around 150bps cross-currency tailwind, thereby resulting in revenue growth of 3.0% in USD terms,” Nirmal Bang Equities said in IT sector update.