Tata Consultancy Services (TCS) has set the stock market abuzz with its announcement of a share buyback during its board meeting on October 11, 2023. This news triggered a wave of buying interest, causing TCS shares to open on a high note and hit an intraday peak of ₹3,679 per share on NSE, marking a new 52-week high.
Experts in the stock market are crediting this surge to TCS's recent filing with the exchange, revealing its board's consideration and approval of the share buyback proposal. They believe that this positive trend is likely to continue, potentially pushing TCS shares to levels around ₹3,800 per share in the near future.
Avinash Gorakshkar, Head of Research at Profitmart Securities, explained that the increase in TCS share price is directly linked to the announcement of the share buyback. Although the exact buyback price hasn't been disclosed yet, the market expects it to be approximately between ₹4,300 to ₹4,500 per share, with an anticipated buyback size of ₹18,000 crore.
Gorakshkar emphasized that the trajectory of TCS shares in the medium to long term will depend on the Q2 results that will be announced on October 11, 2023. However, he remains optimistic about the stock's short-term performance, suggesting further potential upside.
Sumeet Bagadia, Executive Director at Choice Broking, echoed this sentiment, pointing out the bullish chart pattern of TCS shares. Bagadia anticipates that the shares may climb to ₹3,750 to ₹3,800 per share levels in the near term. He advised existing shareholders to maintain a stop loss at ₹3,550 levels while holding for these targets. Additionally, Bagadia suggested that fresh investors could consider buying TCS shares at current levels, setting a stop loss at ₹3,550 apiece.
TCS is getting a lot of attention in the stock market because of its good future prospects and the upcoming buyback. People who invest in stocks are keeping a close eye on how the company is doing, excited about the chance to make money with this exciting news.