TCS gains on expectation of robust Q3 earnings

Street expects the IT major to report dollar revenue growth (sequential) of more than 3%

Shares of Tata Consultancy Services were up 1.5% at Rs 2,363, after hitting an intra-day high of Rs 2,377 on the BSE, on expectation of robust earnings for the third quarter ended December 2013 which are scheduled for release after market hours tomorrow.

The street expects TCS to report dollar revenue growth (sequential) of more than 3% for the third quarter ended December 2013.

"We expect TCS to outperform the industry on the revenue growth front due to its superior market reach and excellent execution capabilities. We believe TCS deserves the premium multiples that it currently commands, given its consistency in performance and leadership in growth/profitability." Angel Broking said in an earnings preview note.

The brokerage maintains 'Buy' rating on the stock with a target price of '2,500.

The stock opened at Rs 2,343 and touched an intra-day high of Rs 2,377 so far on the BSE. Over 340,000 shares were traded so far on both the stock exchanges.