TCS extends gains into third day, hits three-month high ahead of AGM

Shares of Tata Consultancy Services (TCS) extended their gains into third straight day and hit a three-month high of Rs 2,127, up 2.5 per cent, on the BSE on Wednesday ahead of the company’s scheduled annual general meeting (AGM) on June 11, 2020.

The stock was trading at its highest level since March 6, 2020. Thus far in the month of June, it has rallied 8 per cent, as compared to 7 per cent rise in the S&P BSE Sensex. The stock has recovered 41 per cent from its March low of Rs 1,504. It hit a 52-week high of Rs 2,296 on September 3, 2019.

Analysts at Prabhudas Lilladher believe that cut in discretionary spending, project deferrals, delay in deal closures, delay in deal ramp-up, pricing pressure & bankruptcies in select verticals (Retail, E&U, travel) will severely impact revenue growth for the information technology (IT) sector ahead.