Tata Consultancy Services Ltd (TCS) has set the stage for attention-grabbing developments with its announcement of a buyback record date scheduled for November 25, 2023. The IT behemoth has formalized the buyback of its shares at a rate of ₹4150 per share, garnering considerable market interest. Presently, TCS shares are hovering around ₹3,425 apiece on NSE, reflecting a noteworthy premium of more than 20 percent in the ongoing buyback scheme.
Encouraging TCS shareholders to consider parting with their shares, Avinash Gorakshkar, Head of Research at Profitmart Securities, expressed his perspective on the matter. Gorakshkar emphasized that the IT sector is anticipated to witness subdued performance in the coming quarters, given the persistent challenges in the US and European economies—crucial markets for TCS. He foresees TCS shares entering a consolidation phase for the next few quarters, making the current buyback an opportune moment for shareholders to capitalize on short-term gains. Notably, Gorakshkar underscored the tax-exempt status of income derived from this buyback initiative.
Examining the trajectory of TCS share prices, Sumeet Bagadia, Executive Director at Choice Broking, provided insights into the positive momentum witnessed by the stock. Bagadia noted that TCS, presently trading at ₹3,425, recently experienced a robust breakout from its established trading range. This breakout was accompanied by the formation of new higher lows, supported by substantial trading volumes—a signal of a favorable shift in momentum. Additionally, TCS is currently trading above crucial Exponential Moving Averages (EMAs), including the 20-day and 200-day EMAs, underscoring its bullish momentum and hinting at the potential for further upward movement in its price.
As the shares traded 3.13% higher at ₹3,510.95, market observers and TCS stakeholders are closely monitoring the unfolding dynamics.
