Amid reports of Tata Sons planning to sell a portion of its shareholding in Tata Consultancy Services (TCS) to generate over a billion dollars, the stock market today witnessed a sell-off in the shares of the Indian IT giant. TCS share price opened lower and reached an intraday low of ₹4,022 on the National Stock Exchange (NSE), marking a 3% decrease from the previous session’s closing price of ₹4,152.50 per share.
Experts attribute this decline in TCS share price to the stake sale by Tata Sons, although they believe it will only have a short-term impact as the stake sale amounts to 0.65 percent of the total paid-up capital of the company. Medium to long-term investors are being advised to take advantage of this opportunity as the outlook for TCS shares appears promising.
Saurabh Jain, Vice President of Research at SMC Global Securities, mentioned that the news of Tata Sons selling its stake in TCS led to the drop in share price but reassured investors that it would not significantly affect the company’s financials. With substantial deals in the US and European markets, he sees this as a potential buying opportunity for investors.
Expecting a rebound in TCS shares, Sumeet Bagadia, Executive Director at Choice Broking, highlighted positive chart patterns and predicted that TCS shares could reach levels of ₹4,250 and ₹4,400 in the immediate term.
In recent news, Tata Sons aims to raise funds by offloading a portion of its TCS stake to venture into emerging sectors like semiconductors, e-commerce, and phone assembly. The conglomerate plans to divest 0.65% stake in TCS through block deals, targeting ₹9,362.3 crore ($1.12 billion). After the transaction, Tata Sons’ shareholding in TCS is expected to decrease to around 71.7%.
This development has sparked interest in the stock market, with investors strategizing their next moves in light of these changes. Be it for short-term gains or long-term investments, the TCS news has definitely grabbed attention and created opportunities for those looking to capitalize on the market dynamics.