Reliance Industries temporarily topples TCS to become India's most valued company


Today, the Mukesh Ambani-led Reliance Industries (RIL), with a market cap of Rs 4,57,641 crore in intra-day trade, became India's 'most valuable company', overtaking Tata Group’s Tata Consultancy Services (TCS), with a market cap of Rs 4,57,386 crore, to nab the top spot.

(L) Mukesh Ambani and (R) N Chandra

The figures were recorded as of 09.37 am, the BSE data shows. RIL share prices climbed by at least 1.2 percent, and settled at Rs 1,407.50, thus catapulting RIL to a Rs 4,57,641-crore market cap valuation, while TCS traded 0.03 percent down, at Rs 2,321.40.

However, its reign on top was short lived, as at 9:51 am, RIL reduced gains on profit booking, thus causing it to slip to the number two spot again. RIL's m-cap was roughly Rs 4,56,682 crore after its shares were marked down by 1.5 percent, while TCS' stock ended marginally down by 0.5 percent, valuing it at Rs 4,57,099 crore.

 The original article on points out that this moment marks the end of an eight-year-long bout of underperformance for RIL. RIL has risen by 30 percent in 2017 thus far and has progressively been hitting all-time highs for itself in a span of eight years. TCS, on the other hand, has registered a two percent fall in the calendar year 2017.

As a Hindu Business Line article points out, RIL was the most valued company in India between 2008 and 2013, but its valuation fell, to as low as number four in 2015 in the information technology sector, due to many factors like being in the investment phase of many of its businesses, its reduced gas output, and the circumstances leading up to the launch of Jio, riddled with uncertainty and speculation.

While TCS will be announcing its Q4FY17 results today, RIL is scheduled to announce its numbers on April 24, 2017. The gap between the market caps of both companies had been diminishing and was narrower in January 2017 as compared to January 2016, according to the data provided by Capitaline, spanning the last decade. It may be attributed to the Jio success story.