With over ₹30 lakh crore, Tata Group now accounts for 8% of the Indian equity market

The combined market capitalisation of Tata Group surged past ₹30 lakh crore on Tuesday after the largest group company by market valuation, Tata Consultancy Services (TCS), rose to its fresh record high. Shares of TCS surged more than 4% in Tuesday’s trade to hit a record high of ₹4,135.90 on the NSE.

The buoyancy in the IT counter also witnessed TCS’s market capitalisation surpassing ₹15 lakh crore for the first time. What’s more! The largest conglomerate in the country now contributes 8% to the BSE’s market capitalisation, which stood at ₹386 lakh crore.

While Tata Motors, along with Titan Company, added another ₹7 lakh crore to the group’s valuation, others like Tata Steel, Tata Power Co, Trent and Tata Consumer Products also boast a minimum market capitalisation of ₹1 lakh crore. The group has about 30 companies listed on the bourses, with Tata Technologies being the latest addition from the group.

Tata Technologies commands a market capitalisation of ₹46,000 crore. It’s not only the share of TCS are hitting new highs, other companies from the group—Tata Motors, Tata Power, Indian Hotels and Orient Hotels are also trading at their record highs. Additionally, the stock of Tata Steel hit its 52-week high of ₹143.35 on Monday.

TCS, the biggest cash churner for the Tata Group, has been contributing more than half to the group’s valuation, except in a few instances where it fell below 50%. In fact, TCS started with a 48% contribution immediately after its listing in August 2004, and the company has retained its dominance in the group since then, though it had even touched almost 75% in May 2020.

With a ₹30.6 lakh crore valuation, Tata Group—the steel-to-software manufacturer—is the most valued conglomerate in the country. While Mukesh Ambani-led Reliance Group occupies the second spot with a market capitisation of about ₹22 lakh core, Adani group is ranked third in market cap ranking at ₹15.6 lakh crore.

Shares of TCS have gained over 23% during the last three months. The rally in stocks of Infosys and TCS has resulted in the gauge for IT stocks outperforming the broader benchmark Nifty50 in the last three months. While the Nifty IT index has gained 24% during the last three months, the Nifty50 has returned 13% during the same period.