Tata Consultancy Rises on Goldman Rating Upgrade: Mumbai MoverKartikay Mehrotra
Tata Consultancy Services Ltd. rose the most in a month in Mumbai trading after Goldman Sachs Group Inc. upgraded its rating, while New York City awarded the Indian company naming rights to its annual marathon.
Tata Consultancy advanced as much as 4.2 percent to 2,030 rupees and traded at 2,024 rupees as of 11:12 a.m., headed for the biggest gain since Aug. 30. The S&P BSE Sensex climbed 1.3 percent and the S&P BSE India Information Technology Index, or BSET, rose 2.3 percent.
Goldman Sachs upgraded India’s largest software exporter to buy from neutral, citing rising revenue compared with its peers amid an increase in global spending on information technology services. Economic recoveries in the U.S. and Europe, along with a tumbling rupee that boosts repatriated revenue from overseas sales, have triggered a 41 percent jump in the BSET this year.
Tata Consultancy “is well positioned to record sector leading revenue in an improving demand scenario,” Goldman Sachs said in a note dated yesterday. The firm revised its 12-month price estimate for Tata Consultancy to 2,300 rupees.
Tata Consultancy also entered into an eight-year partnership with the New York Road Runners to serve as lead sponsor of the annual New York City Marathon beginning in 2014, the company said in an e-mailed statement. Tata Consultancy has served as a technology consultant for the Road Runners since 2010 and previously developed mobile applications used by runners and spectators for the 2013 half marathon in New York, which will be followed by a new application for forthcoming races, according to the statement.
“We aspire to make the TCS New York City Marathon a more technologically-enriched and socially engaged experience for all its participants and fans across the world, using our core technology skills,” Natarajan Chandrasekaran, chief executive officer of Tata Consultancy, said in the statement.